20^th Sep 2017

According to one of the sector's deposit scheme's survey, nearly 10% (one in eleven) landlords are likely to dispense with using a lettings agent to take on the responsibility for their properties, to cut down costs.

The report says that around 44% of landlords are planning to make changes to their business 'model' as increasing costs including the lowering of the mortgage tax interest relief, higher stamp duty on recent acquisitions, as well as other new measures that have been introduced.

Nearly 25% of landlords are planning to raise rents, 10% will be leaving the sector and 9% will take back the management of their own properties from lettings agents to save money.

Just under a half of the landlords that took part in the survey are happy to stay in the PRS (Private Rented Sector) and up to 25% are planning to leave the market by 2021.

Tony Gimple, whose company is associated with the deposit scheme, said “Landlords should be running their buy-to-let portfolio as a business regardless of tax changes, and those forced out of the market will be the ones who are too highly geared with too little yield.

He added :“Many landlords are trying to do everything themselves and often following unreliable or out of context information, whereas once they are professionally educated on what their options are, many choose to remain landlords and go on to prosper.”

News Archive »