According to a recent report by Alan Ward, The Chairman of the Residential Landlords Association, private landlords are playing a leading role in boosting the economy. And with over a quarter of all London properties now being privately rented, this is set to continue.
One of the hot topics discussed in the lead up to the 2017 Snap General Election is the housing crisis the UK is currently facing. Developers are currently unable to meet the demand for quality new homes offering affordable rent, and there’s an increasingly louder call for the government to work in close partnership with reputable landlords.
Denhan Guaranteed Rent says that in order for the two to work in harmony and really benefit the wider community, there must be a move away from crippling tax hikes. Two thirds of the Residential Landlords Association have reported that hefty taxes have prevented them from buying more properties, resulting in smaller portfolios and, ultimately, less rental opportunities for those struggling to buy.
Stamp Duty and Red Tape – a Big Issue for Landlords
A major bugbear of private landlords, the 3% stamp duty has come under much criticism for the impact it has on the new housing market. The RLA also expressed concern about the amount of red tape involved in renting properties- it currently takes an average of 43 weeks for landlords to repossess a property and the market is restricted by over 400 different regulations.
The costs incurred by all the red tape and tax hikes have given landlords no choice but to up their rental fees. Plaza Estates says that the next government will need to give this careful consideration. “Increased costs have really affected private landlords and left them with no option but to increase their monthly rental agreements. With a rapidly growing population and people already struggling to pay for their accommodation, this is something that whoever is in power will really need to look at.”
That said, these are exciting times for property developers. We know that investing in bricks and mortar is one of the safest things you can do with your hard earned money- it just takes hard work and the ability to spot a great opportunity. There are some fantastic opportunities in the rental market at the moment, with savvy investors looking towards the North of the country to make really impressive returns. The impending Crossrail development and major regeneration projects up and down the UK are also providing significant opportunities- so keeping an eye on property news is always advised if you’re looking to grab a bargain.
The rise in serviced accommodation has also presented a great number of opportunities for new investors to make a fast fortune. As Proskips summarises- “Investing in property is still a great thing to do and there are more opportunities than ever. We just urge the Government to be fair on private landlords, which will then help drive down rental fees.”
Guest post provided by Property Division.