Landlords Need Help With Red Tape
16th January 2020
16th January 2020
We know landlords benefit from a helping hand, and at Merrys, we are always here to help. We work closely with several local landlords, and we are pleased to say we have assisted many in managing rental property. Our close relationship ensures we know about the issues landlords face, and we do our best to take some of the stress and pressure away from local landlords.
We also pay attention to national reports, and a study by Accumulate Capital provides fresh insight into the issues landlords face as we move into 2020. The research found 53% of landlords would think twice about entering the market if they know the regulations which would be imposed on the private regulated sector.
72% of respondents are of the opinion existing tax and regulatory measures are unfairly weighted against landlords. Many landlords believe the volume of regulations, and the rate with which new ones are introduced, or existing ones updated, places landlords under greater pressure.
Most landlords agree there is a need for Electrical Safety checks, and the regulations on this matter will help improve safety standards. However, coming on the back of so many changes last year, landlords must wonder if they will ever be allowed to get on with the business of being a landlord. Regulations such as the Tenant Fees Ban and the Homes (Fitness for Human Habitation) Act had a bigger impact on landlords last year, but there is so much for landlords to consider.
The study also found 69% of landlords believe the cost of managing a rental portfolio has increased sharply in the past five years. The Tenant Fees Ban is an example of this. Landlords could pass on costs to tenants, but this is no longer possible for many landlords; which has placed letting industry professionals under more significant pressure.
The study also suggests several landlords intend to leave the industry. 37% of respondents indicate they are likely to sell at least one of their properties this year, while some of this group intend to sell all their rental properties. Of the landlords who intend to leave the rental industry, 61% have blamed the growing number of regulations and taxes for this decision.
Paul Howells is the Chief Executive of Accumulate Capital, and he has spoken about the issues landlords face these days. He said; “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market. Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them. What we might see as a result, is investors selling properties and downsizing their portfolios.”
If you are a landlord in Northampton and you are looking for assistance in managing your rental property, please get in touch. We are pleased to say we have assisted many local landlords, and we look forward to helping you.