The last two years have seen an unprecedented level of change for landlords, from regulation to taxation and ‘right to rent’ requirements. Arguably, letting property is more complex now than it’s ever been.
However, letting remains a viable option for many, (see two big reasons why in our recent blog. The advantages are still there, but what worries landlords?
The new research shows the five biggest concerns expressed by UK landlords:
- Taxation – 41%
- Economic uncertainty – 41%
- Inflation – 40%
- Regulation – 40%
- Competition (leading to lower rental prices) – 38%
The worry about competition pushing down rental prices could be further fuelled by an increase in rental supply – 40% of landlords are considering new ways to expand their property portfolio in the coming months.
However, it isn’t a completely gloomy outlook! Landlords expressed short term optimism about:
- Increasing house prices – 31%
- Low interest rate – 29% (32% of landlords plan to re-mortgage their properties)
- High demand for rental properties – 27%
Interestingly, Brexit does not feature in the top ten concerns listed by landlords. In fact, 28% believe that Brexit could offer positive benefits for landlords.
‘It’s great to see landlord’s being resilient towards the ever changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand,’ said Christina Dimitrov, business manager at Direct Line for Business.
‘The continued low interest rate environment can only benefit landlords and tenants. However, experts are predicting an interest rate rise in the future and the Prudential Regulation Authority’s tougher underwriting rules for buy to let mortgage lenders may bring some challenges for landlords wanting to expand their portfolios,’ she added.
If you are currently – of thinking of – investing in property, talk to the friendly team at JTM Homes. Our north London experts can offer experience and insight as to how to make the most of property investment opportunities in and around north London.