26^th Dec 2018

Apparently the majority of landlords with mortgages their monthly rental income will just about cover the interest on their loans and will have no impact whatsoever in reducing their debt, due to so many new and increasing costs.

An industry body discovered the figure from its research and is now examining widespread claims that tenants' rents are paying off their landlords' mortgages.

The industry body has put together a document on the subject for a discussion with a campaign group for affordable housing, to discuss their own particular sides of the argument surrounding the widespread view.

The body sticks by its claims that tenants have no real idea on the amount of costs incurred by landlords when renting out a property.

The CEO of the Industry Body, said: “There are myriad costs to running a letting business, including maintenance, repairs and upgrades, licensing, and insurance. Rents have to cover all these costs, as well as the interest on a mortgage, where there is one.

“Housing is expensive for everyone at present. The government needs to encourage the supply of housing in all tenures, including the private rented sector.”

In the discussion paper the trade body wants the government to consider allowing five years 'bedding in time' for its existing policies and to properly evaluate whether they have been successful. This should be carried out before any new policies are introduced into the sector.

It is asking the government to make borrowing and planning rules far simpler to encourage building homes on all types of development.

It also wants the government to stop over taxing landlords, as it is forcing professional BTL investors to leave the sector. The body argues that the continual bombardment of new rules and taxes upon the sector will in no way reduce rents, as it will have the adverse effect of driving rents up for tenants looking for decent and fairly priced rented homes.


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