25th
Sep 2017
The phasing out of mortgage interest relief tax along with stamp duty changes are giving UK landlords real concerns for their future in the sector, however tenant demand is a major worry as well.
According to a latest survey from an online letting agent, 20% of landlords stated that fluctuating levels of tenant demand is their major concern; however 66% of landlords were not worried by the tax changes and would not be changing their portfolios in the next two to five years.
The majority of landlords that took part were committed to the private rented sector and that the one issue that caused them stress was the thought of and having to manage to survive void periods. 13% said this is a prime concern and 74% stated that is a major factor to consider when making future plans.
A landlord who has been in the sector for more than eight years, Claire Rostron, said it is of the utmost importance to continue to be positive about finding good tenants at the end of a tenancy agreement: "Interest from unsuitable tenants can be as frustrating as too little interest. Being in control of client demand and managing the quality and suitability of my tenants has been one less thing to worry about."
Laura Dobson who splits her role as a landlord, gave the feedback to the survey that the new tax changes has made many landlords consider leaving the sector and said: "I’m viewing my portfolio as a long term investment strategy so have no immediate plans to change anything,
"However, what is often of more concern is the impact that is felt between tenancies when a property is delivering no rental income. The market is currently very buoyant so this is less of a concern right now, but that can change at any time and when a property does stand empty, the landlord starts to rack up costs,"
She finishes by saying:"The longer a property takes to let, the less attractive it becomes to prospective tenants, not only because it drops further down the listings, but also because it becomes perceived as unpopular. Quickly securing quality tenants is, therefore, vital."
The founder of the online letting agent and a landlord himself, James Davis, feels that although the new tax changes has undoubtedly caused landlords major concerns and that it must not be forgotten that the day to day running of the 'business' causes major levels of stress and said:"Whilst these issues clearly do concern landlords, it is often the more mundane aspects of renting a property that have an impact on how a landlord chooses to manage his or her portfolio to reduce the stress levels associated with doing so,"
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