Landlords leaving the industry

September 29, 2015

A landlord study carried out by Access Legal earlier this month revealed that 1 in 5 landlords will have left the industry in the next two years, the tax break cuts announced  by the government appear to be the main reason for this.

The weight of the media news on buy-to-let has for some time been on  how there needs to be crackdowns on “Rogue Landlords”,  how landlords will need to be registered and their properties need to be up to standards according to regulations applied by local councils.

It is not all one way trafiic though, the majority of landlords are decent individuals or companies trying to offer a service in the best way they can, the recent study  by Access Legal reportedly highlighted that UK landlords have to deal with a £9.9 billion bill every year due for unpaid rent arrears and damage to properties, this comes out at an average of £6,600 that landlords are out of pocket every year to cover these costs.

As more and more changes take place to regulate the industry Landlords are becoming squeezed from the point of view of returns on their investment, some landlords are dropping their lettings agents to cut costs. A third of landlords feel the law sides too much with the tenants because of how the recent changes are affecting them with high upkeep costs, cuts to tax breaks, and how the courts deal with tenants who do not pay their rent, not only do landlords in those circumstances pick up the court costs but lose out on the rent arrears.

To see the study in full by Access Legal visit their website: http://www.access-legal.co.uk/legal-news/9bn-lost-rent-arrears-damage-every-year-report-reveals-7665.htm#.VgoyP33LK2k

 

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

UK house price growth slows to 1.8 per cent as spring surge in homes for sale reinforces buyers market

Homes for sale are up 11 per cent year-on-year, with further increases expected as nearly 30 per cent of listings typically launch between March and May Sales agreed have risen five per cent year-on-year, with buyer demand still rising, up 10 per cent, despite static mortgage rates and higher stamp duty from April Price growth…
Read More →
Breaking News

£2 billion new investment to support biggest boost in social and affordable housebuilding in a generation.

The government has announced a £20 million investment to support the delivery of community-led housing. An extra £2 billion injection of new grant funding to build up to 18,000 new social and affordable homes has also been confirmed today, helping to deliver the biggest boost to social and affordable housing in a generation while making…
Read More →
Breaking News

Building Safety Levy is an Anti-Growth Policy

The Government has released its response to the Building Safety Levy (BSL) consultation, confirming the taxation levels it seeks to impose across the development industry. Richard Beresford, Chief Executive of the National Federation of Builders, said: “The Building Safety Levy is anti-growth, anti-SME policy, which will weaken the housebuilding industry and put the Government’s 1.5…
Read More →
Breaking News

The Remediation of Dangerous Cladding report

The Public Accounts Committee has released its report; The Remediation of Dangerous Cladding identifying a range of barriers to successful remediation and presenting recommendations to the UK Government. The scale and impact of the cladding crisis that followed the Grenfell Tower disaster has proved much greater than anyone understood when this Committee first reported on…
Read More →
Breaking News

Housing affordability in England and Wales: 2024

In 2024, the median average home in England, at £290,000, cost 7.7 times the median average earnings of a full-time employee (£37,600); in Wales the average home (£201,000) was 5.9 times annual earnings (£34,300). Affordability in England and Wales in 2024 has returned to its pre-coronavirus (COVID-19) pandemic levels after a sharp increase between 2020…
Read More →
to let sign 2025
Letting Agent Talk

Rent Guarantee vs. Tenant Vetting: Which Offers Better Protection?

All landlords like to maximise their rent revenue and protect their property from the vagaries of tenant whims, market downturns and other factors. There are two primary approaches to this: through careful tenant vetting to avoid getting lumbered with problem tenants, and by using a rent guarantee scheme to ensure payment. Both have their benefits…
Read More →