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Majority of landlords waiting for lockdown measures to ease before investing

Over half (59.8%) of BTL landlords are waiting for lockdown measures to ease before investing in properties, according to the National Landlord Index by Accommodation.co.uk.

The research highlights that UK landlords still see the rental market as a safe place to invest especially as the stock market has been so volatile during the pandemic.

This desire from landlords to expand their property portfolios in 2021 is reflected in the demand for buy-to-let mortgages with the index revealing that nearly two-fifths (37.8%) of landlords are planning to apply for one this year.

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As the UK starts to see the benefits the vaccination has on the economy, Accommodation.co.uk says it is “clear” that landlords are optimistic that this recovery will be reflected in house prices long-term.

Aaron Short, founder and chief executive at Accommodation.co.uk, said: “We are always listening to our landlords and tenants to understand the needs of the market and this is why the National Landlord Index remains so important.

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“Understanding how BTL landlords are being impacted by lockdown measures and what their plans are post-pandemic help us to understand the future lettings market. It is great to see landlords looking to expand portfolios and generally positive about the future and this certainly mirrors the growth we have seen at Accommodation.co.uk.

“We have been at the forefront of updating this archaic industry and we believe our award-winning model offers tenants and landlords the best solution in the current market.”

Source: Property Wire

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Value of BTL portfolio rises despite drop in landlord numbers

The latest figures by estate agent Barrow and Forrester show that despite the number of landlords operating in the buy-to-let sector dropping by 8% in two years, the value of the average BTL portfolio has risen by almost £40,000 in the past 12 months.

Across Britain, the average landlord’s buy-to-let portfolio consists of 1.9 properties and with the current average house price sitting at £254,525, it equates to an estimated value of £491,234.

This is an increase of £38,820 in the value of their buy-to-let portfolio in one year.

The South West has seen the most considerable uplift in portfolio value with an increase of £49,000 in the past year.

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The East Midlands has also seen a notable jump of £41,000 in value, with the East (+£38,000) South East (+£37,000) and West Midlands (+£36,000) also climbing considerably.

London still leads in terms of the most valuable landlord portfolios.

With the average landlord owning two properties in the capital, the total value of their property investment is almost £1m having climbed by £34,000 in the last year.

The South East has not only seen one of the largest annual increases in portfolio value, but at £641,093, landlords in the region are also seeing the second-highest total sum.

The East (£575,187), South West (£530,890) and East Midlands (£427,942) are also home to some of the highest buy-to-let portfolios per landlord.

James Forrester, managing director of Barrows and Forrester, said: “A sharp increase in property values brought on due to the current stamp duty holiday has caused a considerable jump in the value of BTL investment portfolio up and down the nation.

“However, true to form, it seems as though the government will do their best to spoil the party with an increase in capital gains tax via next month’s budget.

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“This is quite astounding given the string of changes already implemented to stamp duty tax thresholds and tax relief and the impact it has had on landlord numbers.

“They don’t seem to understand that the BTL sector is the backbone of the rental market and fewer landlords means fewer properties and even less affordable rents.

“Who will provide the much needed rental accommodation if not the buy-to-let sector?

“Because it certainly won’t be the government, who have proved time and time again that they’re incapable of implementing any meaningful strategy where the delivery of property market stock is concerned.”

By Jessica Nangle

Source: Mortgage Introducer

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Landlords intend to continue purchasing after SDLT deadline

BTL landlords intend to continue purchasing rental property after the stamp duty holiday has reached its conclusion, according to Foundation Home Loans.

The data revealed that 16% of landlords intend to purchase over the next 12 months, 48% plan to do so in Q1, 41% in Q2, 28% in Q3, and 29% in Q4.

In addition, just 14% of landlords said that they would abort their transaction if completion before the SDLT deadline did not look achievable.

Of those landlords intending to purchase in Q1, 65% said they were very or quite confident they would complete by 31 March.

When the respondents were questioned whether they believed the government would extend the stamp duty deadline, 28% said yes, while 31% disagreed.

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In addition, only 4% of those surveyed said they were purchasing because of the availability of the stamp duty holiday

A quarter of those intending to purchase in 2021 said they were holding off purchasing as they believed property prices were currently inflated.

The research was undertaken by BVA BDRC and carried out between December and January with the results based on 846 online interviews.

George Gee, commercial director at Foundation Home Loans, said: “As we know landlords think long and hard before adding to their portfolios and, as our research reveals, they are unlikely to just confine any purchase activity to the first quarter of this year in order to simply benefit from the stamp duty holiday.

“There are a number of positive results to come out of our exclusive research, not least landlords’ continued intention to keep on purchasing after the deadline has passed, and the news that many BTL landlords will not abort their transactions if there is no extension and they look unlikely to complete by 31 March.

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“In that regard, the next month and a half is very important for the sector.

“Foundation has put in place significant extra resources to our completions team in order to ensure we can complete as many cases as possible by the end of March.

“Looking beyond Q1, there will clearly be ongoing opportunities for advisers active in the landlord borrower space, and all the signals point to significant activity taking place in both the purchase and remortgage sectors.

“We should not forget that many landlords’ special rates are coming to an end over the months ahead, especially those that bought prior to the last stamp duty surcharge increase for additional homeowners back in Q1 2016.

“Foundation’s new range of buy-to-let products and our new limited edition limited company deals should offer landlord clients a variety of options, in order to achieve their aims through 2021.”

By Jake Carter

Source: Mortgage Introducer

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BTL Landlords to build portfolios beyond 31 March

Buy To Let landlords are undeterred by the looming stamp duty holiday deadline and intend to continue purchasing rental properties beyond 31 March, a survey by Foundation Home Loans has revealed.

Research by the intermediary-only specialist lender has revealed of the 16% of landlords who said they were going to purchase over the next 12 months, 48% said they would do so in Q1, 41% in Q2, 28% in Q3, and 29% in Q4.

Landlords were able to pick more than one quarter if they were unsure when they might complete.

The landlord research – undertaken by BVA BDRC and carried out between December and January with the results based on 846 online interviews – also found landlords seemed confident about their ability to complete purchases before the deadline. Only 14% said they would abort their transaction if completion did not look achievable.

Of those landlords intending to purchase in Q1, 65% said they were very or quite confident they would complete by the 31 March.

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Extending the deadline

When asked whether they believed the government would extend the deadline, 28% said yes, while 31% disagreed, although the questions were asked before the recent Parliamentary debate on the stamp duty holiday.

There has been growing industry support for a tapering of the deadline to allow those already within the purchase process to complete beyond the deadline date but still secure the tax saving.

Only 4% of those surveyed said they were purchasing because of the availability of the stamp duty holiday. Meanwhile, 25% of those intending to purchase in 2021 said they were holding off buying as they believed property prices were currently inflated.

The most recent house price index from Nationwide for January revealed that prices had dropped slightly by 0.3% month-on-month, and annual house price growth had slowed from 7.3% to 6.4%.

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Foundation’s research suggests landlords will look at slight house price drops throughout the year as an opportunity to add to portfolios.

George Gee, commercial director at Foundation Home Loans, said: “As we know landlords think long and hard before adding to their portfolios and, as our research reveals, they are unlikely to just confine any purchase activity to the first quarter of this year in order to simply benefit from the stamp duty holiday.

“There are a number of positive results to come out of our exclusive research, not least landlords’ continued intention to keep on purchasing after the deadline has passed, and the news that many landlords will not abort their transactions if there is no extension and they look unlikely to complete by the 31 March.

“In that regard, the next month-and-a-half are very important for the sector. Foundation has put in place significant extra resources to our completions team in order to ensure we can complete as many cases as possible by the end of March.

“Looking beyond Q1, there will clearly be ongoing opportunities for advisers active in the landlord borrower space, and all the signals point to significant activity taking place in both the purchase and remortgage sectors.

“We should not forget that many landlords’ special rates are coming to an end over the months ahead, especially those that bought prior to the last stamp duty surcharge increase for additional homeowners back in Q1 2016.”

Foundation relaunched its entire buy-to-let product range last month, with rate reductions across the board, and last week launched new Limited Edition two-and five-year fixed rates with reduced fees for those landlords purchasing or remortgaging via a limited company vehicle.

Source: Mortgage Finance Gazette

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These 10 UK cities are the most profitable for buy to let landlords

CIA Landlord has revealed its annual ranking of the best UK cities to buy to let for 2021, with some areas proving to be more profitable than others. The analysis is based on the average property price, mortgage cost, average rent income, and the monthly costs of being a landlord to calculate the monthly profit. Listed are the 10 cities with the highest monthly earnings for landlords.

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  1. Brighton
    Average property price: £410,541. Average rent: £2,044. Monthly mortgage cost: £1,411. Monthly profit: £571.85
  2. Bangor
    Average property price: £185,833. Average rent: £1,193. Monthly mortgage cost: £639. Monthly profit: £500.53.
  3. Portsmouth
    Average property price: £243,945.. Average rent: £1,379. Monthly mortgage cost: £838. Monthly profit: £479.27.
  4. Leeds
    Average property price: £228,424. Average rent: £1,323. Monthly mortgage cost: £785. Monthly profit: £477.60.
  5. Lancaster
    Average property price: £210,979. Average rent: £873. Monthly mortgage cost: £725. Monthly profit: £474.54.
  6. Bristol
    Average property price: £344,667. Average rent: £1,699. Monthly mortgage cost: £1,184. Monthly profit: £453.20.
  7. Coventry
    Average property price: £209,309. Average rent: £1,213. Monthly mortgage cost: £719. Monthly profit: £432.27.
  8. Manchester
    Average property price: £200,517. Average rent: £1,176. Monthly mortgage cost: £689. Monthly profit: £425.48.
  9. Nottingham
    Average property price: £225,917. Average rent: £1,248. Monthly mortgage cost: £776. Monthly profit: £410.21.
  10. Salford
    Average property price: £172,622. Average rent: £1,048. Monthly mortgage cost: £593. Monthly profit: £393.33.

By Claire Schofield

Source: The Scotsman

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More landlords look to expand outside London and the South East

One in 10 landlords plan to purchase buy-to-let properties this year, up from 3% at the end last year, Source Business research shows.

The rise in landlord confidence and a change in tenant priorities following the lockdowns is leading investors to a move away from London and the South East, to less built-up areas.

Increasingly tenants want greater home working space and leisure time, resulting into a spike in demand for larger properties.

Mish Liyanage, managing director of The Mistoria Group, said: “We are seeing a rise in professional landlords looking to acquire affordable terraced properties with gardens and apartments in the North West. Lower prices, high yields, expanding population and Northern Power house initiative/HS2 have contributed to this interest.

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“A significant proportion of the professional landlords that we work with are located in the Midlands and the South, but want to invest in the North West, because of the attractive property prices, high yields and occupancy rates. Many investors are moving away from London and the South East and are searching for regions that give them exceptional returns.”

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At the end of 2019, 82% of landlords claimed that they had no plans to acquire another property in 2020, while just 3% were intending to add more than a single property to their portfolio.

Soon after the stamp duty holiday was implemented, 10% of landlords said they are now planning to purchase more properties and build on their portfolio, while just 5% said they had any intention to sell any existing properties.

BY RYAN BEMBRIDGE

Source: Property Wire

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Landlords who sold in 2019 made capital gains of £78,100

Landlords who sold properties in 2019 typically owned the home for 9.1 years and sold it for £78,100 more than they paid for it.

People selling in London made the biggest gains, with the average London landlord making £253,580, over 20 times that of a seller in the North East (£11,710).

Research from Hamptons International found that 84% of landlords who sold their buy-to-let property in England and Wales last year made a gross capital gain, with only 16% making a loss.

Aneisha Beveridge, head of research at Hamptons International, said: “The profitability of the buy-to-let market has been questioned in recent years and is one of the main reasons why some landlords have chosen to sell up.

“But one of the biggest bonuses from cashing in comes from the capital gain on a property. Over a third of landlords’ total return comes from capital growth rather than rental income in Great Britain.

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“Landlords in the South, where house prices are higher and historic price growth has been stronger, saw the greatest capital gains last year. In fact, the average London landlord gain was over 20 times that of a seller in the North East where landlords are more reliant on rental income.

“But with house price growth expected to stay lower than in the past, more landlords are having to switch their focus to maximise rental income, rather than rely on capital growth.

Last year an estimated 150,000 properties were sold by landlords in England and Wales.

Beveridge added: “The profitability of the buy-to-let market has been questioned in recent years and is one of the main reasons why some have chosen to sell up.

“But one of the biggest bonuses from cashing in comes from the capital gain on a property. Over a third of landlords’ total return comes from capital growth rather than rental income in Great Britain.”

BY RYAN BEMBRIDGE

Source: Property Wire

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Coronavirus Could Cost Buy to Let Landlords Nearly £14.9bn

The latest research by Deposit Replacement Scheme, Ome, has found that the impact of the Coronavirus could cost buy to let landlords nearly £14.9bn should tenants be unable to pay rent during the three month support period announced by the government yesterday.

Last night the government announced that they would suspend new evictions and halt new possessions proceedings to the court while the Coronavirus crisis persists. They have also protected landlords as well as tenants with a three-month mortgage payment holiday on buy to let mortgages.

However, if tenants simply can’t pay, this holiday will do little to help landlords who will still have to pay once the three months is up, with or without the rental income from their tenants.

Ome’s research shows that there are 5.2m households currently within the private rental sector alone and without the ability to work and pay their rent, the buy to let sector could see a loss of £4.97bn every month based on the average monthly rent of £955 alone. Over three months this climbs to a huge £14.9bn.

Nationally, this lost income is highest in England with potentially £11.6bn lost in rental income, while London is home to the biggest sum regionally with a potential £4.9bn lost in three months alone.

What does this mean for the average landlord?

There are some 2.6m landlords operating within the UK buy to let sector meaning the average landlord has a portfolio of two rental properties. With an average rent of £955 and a loss of three months’ rental revenue across both properties, they could be facing an individual £5,730 shortfall in rental income.

With a ratio of 2.1 properties per landlord in Scotland, the loss is at its greatest at £6,146 over three months with Northern Ireland also high at £6,083.

Not only does this huge sum have implications on a sector that has already seen its financial return stretched by the government, but it could see tenants out of pocket even further should landlords look to keep their tenancy deposit to account for lost rental income.

Co-founder of Ome, Matthew Hooker, commented:

“It’s great news that the government are providing some financial respite for the nation’s landlords, however, it’s more of a weekend away than a holiday and once expired, UK landlords are still facing the cost of a buy to let mortgage without the rental income to pay it.

It’s by no means the fault of the tenant if they are unable to pay but there is a very real chance that landlords will turn to the rental deposits at the end of a tenancy in order to recoup this lost rent. While this would be unfair on a tenant who has otherwise kept the property in good order, it may well be the case that landlords are simply left with no choice.

The silver lining at least is that hopefully, not all tenants will be unable to pay their rent and so this sum of lost rental income should reduce, but whichever way you look at it, the UK rental sector is in for a tough few months.”

By Chris McColgan

Source: Business News Wales

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Should buy-to-let landlords switch to holiday letting?

Recent research reveals thousands of landlords have switched from long-term to holiday letting, but will they be better off financially?

Over the past three years, landlords have gradually lost the ability to deduct mortgage interest costs from their turnover before calculating their tax bill.

From April, they will not be able to deduct any finance costs from their property earnings and will instead receive only basic-rate tax relief on these costs.

The tax change, together with a number of regulatory changes in the sector, including the Tenant Fees Act, has led many landlords to consider selling their properties.

Others, however, are instead looking to switch strategy with holiday or short-term letting becoming one of the key areas of interest.

According to a report by letting agent professional body ARLA Propertymark earlier this year, nearly 50,000 properties have been changed from long-term letting to short-term letting.

Its research, which was carried out by Capital Economics, found that a further 10% of landlords were considering offering short-term lets in the future.

What’s the appeal?

There are several reasons landlords may be thinking about holiday lets but a big one is tax.

Subject to meeting certain criteria, properties used as holiday lets are still able to deduct all of their mortgage interest and other finance costs from their turnover before calculating the tax liability, which used to be the case with buy-to-let properties.

Bev Dumbleton, chief operating officer at Sykes Holiday Cottages, says the holiday rental agency is seeing a growing number of landlords move into holiday letting for this reason.

“Stringent tax rules on buy-to-lets, phased in from 2017, have made it increasingly difficult to turn a profit,” says Dumbleton.

“This is only going to get worst for landlords.”

Nick Morrey, product technical manager at broker John Charcol, believes those switching to holiday letting are also motivated by the growing staycation trend.

“Thanks to Brexit, the UK is becoming a more popular holiday destination and demand for holiday lets is likely to increase and already has been since the referendum,” says Morrey.

Another factor driving landlords to change strategy is the Government’s plan to abolish Section 21 evictions.

Many landlords are concerned they will be stuck with difficult tenants for long periods of time once this change comes into force.

“With longer term lets, it can be riskier taking on tenants if they don’t turn out to be quite what you hoped,” says Dumbleton.

“Landlords may find themselves stuck in a binding contract when things aren’t ideal.”

Although frequently dubbed ‘no-fault’ evictions, landlord groups such as the National Landlords Association (NLA) have warned that landlords are typically using Section 21 to evict tenants who are not paying the rent or causing damage.

There is another process that can be used in these circumstances – a Section 8 eviction – but NLA research has shown landlords do not believe this process works.

How do the numbers stack up?

In many areas, it tends to be more lucrative from a rental income point of view to rent properties out on a short-term basis.

But costs and managing agent fees also tend to be higher for holiday lets, so the overall financial picture in many cases was not different enough to warrant the extra hassle for many landlords.

With the tax disparity added into the mix, this may no longer be true, especially for higher rate taxpayers.

Example one: a holiday hotspot

We crunched the numbers on a two-bedroom holiday let in popular seaside town Whitby to see whether a landlord would end up with more money in their pocket via buy-to-let or holiday let.

 Buy-to-letHoliday let
Rental income£7,872£13,000
Mortgage interest£1,780£2,936
Commission£945£3,120
Running costs£787£2,600
Tax£2,100£1,738
Profit£2,260£2,606

Rental income figures for buy-to-let taken from home.co.uk; for holiday let provided by Sykes Cottages.

Mortgage rates provided by John Charcol – 2% for buy-to-let; 3.3% for holiday let, based on a five-year fix at 75% loan-to-value (LTV) on an interest-only basis. Figures based on the average flat value in Whitby of £118,643, taken from home.co.uk.

Commission rate estimated at 12% including VAT for buy-to-let; 24% including VAT for holiday let.

Other running costs estimated at 10% for buy-to-let; 20% for holiday let. Based on a tax rate of 40%.

Example two: a city centre pad

We also crunched the numbers on a city short-let in Fairfield, Liverpool, using data provided by short-term letting agent Portico Host.  

 Buy-to-letHoliday let
Rental income£16,716£32,883
Mortgage interest£1,902£3,138
Commission£2,006£7,892
Running costs£1,672£6,577
Tax£4,835£6,110
Profit£6,301£9,166

In this example, we used Portico’s rental income and average house price data for this area (£126,779), which was based on AirDNA, Rightmove and Land Registry data.

We made the same mortgage, commission, running costs and tax assumptions as in the Whitby example.

The bottom line

As it can be seen in the scenarios, in both cases, a landlord would be better off renting a property on a short-term basis rather than on a long-term one, albeit only slightly in the Whitby example.

But while a city-centre property might be more lucrative, a seaside hotspot might be more appealing for those looking to use the property themselves or retire there in the future.

It’s worth pointing out there are lots of other considerations to take into account if you’re pondering moving from long-term to short-term lets.

In some areas – London, for example – there are rules prohibiting short lets for more than 90 days per year unless you’ve applied for planning permission.

There are also far fewer lenders offering mortgages for holiday lets so obtaining finance is likely to be more difficult than for buy-to-let.

If you own a leasehold property, you’ll also need to seek the permission of your freeholder and this may not be granted.

There’s a lot to consider if you’re thinking about changing strategy, but the numbers suggest it could be a worthwhile move for some landlords.

By Joanne Christie

Source: Love Money

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UK landlords reveal top concerns as Buy to Let economy heats up

Private rental prices are climbing, the economy is growing stronger, and demand is increasing. Reports predict that rental prices will see a ten percent increase by 2024, and during that same period, house prices are forecast to increase by a huge 15.3 percent on average.

Despite this bounceback in the market, UK landlords are still confronting numerous changes. Government reforms, perplexing mortgage rules, and cumbersome tax increases combine to pinch profits while creating new headaches for landlords. As a result, many landlords are starting to utilise short-term letting sites such as Airbnb.

With the implications of a rapidly changing buy to let landscape in mind, the UK’s landlords recently shared their concerns in Portico London estate agents’ landlord survey, along with advice for maintaining and maximising profitability moving forward.

Taxes and legislation were top concerns for UK landlords

It’s no surprise that concerns over recent and upcoming legislative changes and tax increases are at the top of the list for most landlords. A full 58 percent of UK landlords placed these two considerations above all other matters.

Several pieces of new legislation take effect in 2020. Landlords and those who are considering entrance into the buy to let marketplace should be aware of:

  • The Homes (Fitness for Human Habitation) Act of 2018, which outlines certain standards that must be met within all rental properties. This isn’t a concern for landlords who maintain their properties well, however it’s worth a look simply to ensure that your property meets specifications. The Homes Act applies to all tenancies as of 20 March 2020.
  • Minimum Energy Efficiency Standards of E or above will apply to all non-exempt rental properties as of April, 2020. Landlords who need to arrange for an EPC assessment or have necessary maintenance work completed should prioritise compliance to avoid complications.
  • New Capital Gains Tax rules take effect on 6 April 2020. Changes to lettings relief and final exemption periods apply and from April, landlords will be granted only 30 days to tell HMRC and pay Capital Gains tax. This is a major change; previously, landlords were allowed to delay payment of Capital Gains Tax to the next tax year.
  • Client Money Protection Scheme changes take effect in April 2020 as well. Lettings agents in England were previously allowed a 12-month grace period to join an approved client money protection scheme. This has expired. All UK lettings agents must now protect landlord and tenant money by belonging to a client money protection scheme.
  • An Extension of the Tenant Fees Act will cover all existing tenancies beginning in June 2020. In short, this legislation bans many tenant fees for new tenancies. It prevents landlords and letting agents from charging fees other than deposits, holding deposits, rent, and charges for defaulting on contracts. Breaking this law means fines up to £5,000 for the first offence and fines up to £30,000 for subsequent offences.
  • Section 21 changes, electrical safety checks, and other rules without specific dates.

Property maintenance and tenant behaviour worry landlords

More than a third (31 percent) of landlords surveyed stated that property maintenance was a top concern. Tenant behaviour and property damage were listed as leading issues for a full 27 percent of landlords. These two concerns often go hand in hand, yet a full fourteen percent of landlords stated that they don’t carry landlord insurance to offset potential costs associated with damages. Another fourteen percent weren’t sure whether their portfolios included landlord insurance.

With concerns over property maintenance and damages caused by tenants and their guests at the fore, Portico recommends taking security deposits, screening tenants through a tenant credit check, securing detailed tenancy agreements, and building healthy relationships with tenants. Portico states property management is designed to ease these concerns for landlords via rent guarantee and other protective measures.

Budgeting for maintenance and renovations should be a major consideration. Portico’s survey showed that a full 54% of landlords found themselves dealing with up to three maintenance issues in 2019 alone, while another 25 percent of landlords had to handle four or even five maintenance-related issues that same year. A smaller percentage of landlords were faced with even more problems: About five percent had between 5-9 issues to deal with, while another five percent had to handle ten or more problems.

Just how much money should landlords set aside for general maintenance costs annually? Research from LV suggests that it’s wise to set aside £3,134 per property, per year. Portico’s survey respondents typically budgeted less; only 44 percent said that they actually budgeted for maintenance, and those landlords set aside an average of £1,000 to £2,000 per property per year.

As for renovations, a full 63 percent of landlords surveyed renovated at least one property after purchasing it. 33 percent of those said that the purpose of the renovations was to reduce void periods and make the property easier to rent, while 38 percent said that they improved their properties to keep current tenants happily housed.

Brexit takes fourth place; market conditions come in fifth

A mere 19 percent of landlords continue to place worries over Brexit’s impact ahead of other concerns. As the market continues to stabilise following the general election results and the so-called “Boris bounce,” only 18 percent of landlords put market conditions at the top of their list.

Portico states that “As stability returns to the property market after Brexit, we predict that homebuyers and sellers will have the confidence to return to the housing market. Sellers in particular have the incentive required to move forward now that there is a good likelihood that they’ll receive better offers.” 

Short-term rentals make void periods less of a concern

Not too long ago, void periods were a chief concern for landlords across the UK. These days, worries over empty rental properties have subsided, taking sixth place. While London places limits on the number of days a rental may be offered via Airbnb, it’s still easy for landlords to utilise short-term rentals as a simple, effective method for maximising revenue between long-term tenants.

There’s another reason why more landlords are turning to Airbnb as a solution: Airbnb management services eliminate the legwork associated with offering rental properties to holidaymakers, so landlords enjoy a more profitable return on investment without worries over mundane tasks such as laundering linens, hiring cleaners, and handling other essential yet time-consuming chores.

Letting agents gaining popularity

Not surprisingly, landlords find tax and legislative changes worrisome – and the many day-to-day demands associated with managing rental properties can be cumbersome particularly when landlords have other professional demands. Only about 54 percent of landlords are managing their own buy to let properties; meanwhile, 43 percent take advantage of letting agents and another 3 percent use online management services.

The buy to let industry is becoming more complicated, but there is still money in buy-to-let and landlords are remaining optimistic. Landlords who work with lettings agents and other property experts can enjoy access to greater insight and assistance with issues including taxes, compliance with legislation, and more. Handyman services, rent guarantees, and maintenance between tenancies are in higher demand than ever before. While industry experts can’t completely erase landlords’ concerns, it’s clear that a team approach eases the way forward in an increasingly complex buy to let landscape.

Source: London Loves Business