Tag Archives: buy to let properties

UK’s landlords set to leave PRS

Buy to let landlords around the UK are set to sell up over the coming years because of tax changes to the sector which makes owning a rental property unprofitable, according to new research. The survey by estate agency Maskells found that thousands of landlords will find it more difficult to turn a profit from their buy to let investment because of changes to mortgage tax relief and stamp duty as well as the tightening of buy to let lending criteria. The result is a growth in costs which could see many landlords having to put up rents which would deter potential tenants. As a result, according to Maskells, the new tax measures could see around 163,000 homes coming onto the market in 2017/18 as a direct result of the changes. Buy to let properties being sold   This boom in the number of buy to let properties being sold will, in some areas, lead to an oversupply of property for sale which will force prices downwards. Maskell’s Charles Curran said: “Tinkering by the Government’s may lead to a sell-off in the buy to let market which has provided the housing rental stock the UK depends on. “The situation is […]

A tenancy will last an average of 18 months

The average tenancy will, according to a new survey, last for an average of 18 months. Direct Line for Business says that tenants today are increasingly taking a short-term view when it comes to renting property. Their findings appear to contradict previous research which pointed to tenancies becoming longer. However, Direct Line says that tenants in Birmingham are staying in their private rented home for two years and four months, on average, which gives landlords the smallest tenant turnover in the country. The smallest tenant turnover is London   Surprisingly, the next location with the smallest tenant turnover is London where landlords have tenants remaining in the property for one year and nine months, on average. Next on the list is Leicester where tenants stay for one year and eight months, and tenancies in Edinburgh, Sheffield and Liverpool last an average of one year seven months. The greatest turnover of tenants can be found in Cardiff where landlords have tenants remaining in the same rented property for just 11 months, in Leeds tenants remain for 12 months and in Bristol tenants remain in their home for 14 months. Typical annual void period is 22 days for buy to let landlords […]

Rents Will Be Pushed Up By Stamp Duty Charge

Tenants face paying more in rent because of stamp duty reforms on buy to let properties, says the Association of Residential Letting Agents (ARLA). In their latest report, the Association says that 57% of its members say rents for tenants will rise after the stamp duty hike comes into effect with landlords having to push their increased costs onto tenants. In addition, 52% of letting agents have seen an increase in buyers wanting to invest in buy to let property and beat the stamp duty deadline. When questioned further, 63% of letting agents say that the supply of buy to let property will fall after the stamp duty deadline passes in April, after that landlords will be slowly forced from the market. Stamp duty changes will hit small landlords   ARLA’s managing director, David Cox, said: “The stamp duty changes will hit small landlords and also institutional investors and our members report landlords are rushing to snap-up buy to let properties but it’s likely that we will see the market fall like a stone after April and, probably, it will not pick up again until 2017. “This will almost certainly mean rents will increase as supply drops and competition intensifies […]