Tag Archives: Landlords

Landlords take keen interest in HMOs

Landlords have a larger appetite for HMOs in a bid to boost their rental income by targeting young professionals and students, according to a report. Multi-Let UK says it has seen a 150% rise over the past year in investors looking to purchase HMOs and multi-lets. A sister company has also seen a 300% year-on-year rise in potential investors paying to join a waiting list that flags-up refurbished and available HMO properties. One reason for the growth is the incoming tax rises and changes to tax relief as well as the new stamp duty rules and the tightening of buy to let mortgage lending which will see landlords struggling to make profits. The managing director of Multi-Let, Daniel Hill, said: “Investors recognise the opportunity to boost their rent from a property that is home to multiple occupants and who pay rent separately. The attraction of HMOs   “The tax hikes for investors and landlords have made them look again at portfolios and how to boost rental income and profits. The attraction of HMOs is rent does not need to be raised if the profitability of lots of tenants is higher than a standard property.” However, he highlighted that HMOs are […]

Landlords told to head north for best yields

Landlords should avoid investing in London property and head north for better buy to let returns, recording to research. Assetz Property says that following the Brexit vote to leave the European Union, the best returns will be enjoyed in the North of England. The firm says that buy to let landlords can achieve yields of 8.5% with such property in Leeds whereas gross yields in London average 3.5%. In addition, the research reveals that the disposable income for people in Leeds is much higher than those in London despite the capital’s average salary being £40,087 which means tenants there have a disposable income of £6,600 – and that’s before paying for food, travel expenses and builds. However, in Leeds the average salary is around £10,000 less than is found in the capital but they can rent a quality home for an average of £11,244 a year. Investors should concentrate on the return on their investment   The chief executive of Assetz Property, Stuart Law, said: “With interest rates set to fall on savings and London house prices set to drop, investors should concentrate on the return on their investment and yields. “The potential relocation thousands of highly paid city workers […]

Top cause of stress for landlords revealed

One of the main causes of stress and worry for the UK’s landlords has been revealed as the controversial ‘Right to Rent scheme’, says a new study. In a report from letting agents PropertyLetByUs, they say that the legislation causes stress for one in three buy to let landlords and for those who have properties in areas with high numbers of immigrants, the situation is acute. Indeed, landlords in London, the West Midlands, the South East, the North West and in the East of England are said to be those suffering the most with the new law. The next stressful problem for landlords is dealing with tax issues with HM Revenue and Customs, then it is raising finance for their portfolio and then having to deal with tenant complaints and problems with void periods. The number one issue for causing stress and worry for landlords   However, according to the study, the number one issue for causing stress and worry for landlords is having to deal with rent arrears and arranging for property repairs. The research also reveals that landlords believe they are paying more than they should do for tenant reference checks which they are now required by law […]

Numbers of buy to let landlords grows

Despite changes to the tax relief regime and a stamp duty surcharge, buy to let landlords are still flocking to invest in the sector, according to new figures. Estate agents ludlowthompson points to record low interest rates and volatility on the stock markets as contributing to the growing numbers of landlords. The firm used HM Revenue and Customs data to reveal that the number of landlords in the UK rose by 7% to reach 1.75million in 2014. Apparently, landlords earned £4.2 billion from rental properties, up from £3.1 billion the year before. Calculating landlord numbers and earnings   The estate agents say the HMRC data is the most up-to-date available for calculating landlord numbers and earnings and they say that the actual number will have risen even more because so many new landlords bought buy to let properties before the 1 April stamp duty deadline came into effect. In addition to the stamp duty hike, it appears that the government changes to tax relief rules is not putting off investors from becoming buy to let landlords. Indeed, the chairman of ludlowthompson, Stephen Ludlow, said: “Investors are drawn to buy to let because the returns outperform routinely other investments and buy […]

Pensioner buy to let landlords ponder selling-up

Despite offering a valuable retirement income, more than 40% of retiree landlords are considering off-loading their buy to let property, according to a survey. Responsible Equity Release also found that seven in 10 pensioner landlords said that without their rental income they would struggle to get by. More than 1,000 retired people who owned a rental property were surveyed and 92% of them said mortgage interest relief changes would have an impact on their profits. The situation is so worrying, says the firm, that pensioner landlords are now wondering whether it is worth hanging on to their buy to let property at all. Pensioners with a buy to let property   The firm’s managing director, Steve Wilkie, said: “For a lot of pensioners their buy to let property has helped because of low interest rates while savings have struggled and attract little interest, their property income is strong. “Many say they would really struggle to make ends meet without their buy to let income boost.” He said that it appeared the Chancellor George Osborne has forgotten that his new tax on buy to let properties will not affect wealthy landlords. Mr Wilkie added: “The changes will hit hard-working honest people […]

Landlord confidence tumbles in the UK

Up to 500,000 buy to let properties could be sold as investors’ confidence tumbles and they leave the market this year. That’s the prediction from the National Landlords’ Association (NLA) who say that confidence among the UK’s landlords is at its lowest since the banking crisis. The NLA points out that the number of landlords wanting to sell-up has doubled since July last year. That’s when the Chancellor George Osborne announced his double whammy of tax hikes – removing mortgage interest tax relief for landlords and adding a 3% stamp duty surcharge on buy to let purchases. The Chancellor said his policies were aimed at ‘creating a level playing field’ but landlords with 15 properties and more are set to avoid the penalties. Landlords say they are not creating the problem   Now smaller landlords say they are not creating the problem that the government’s policies have been designed to tackle. The NLA is predicting that after 500,000 properties leave the buy to let sector, there will be another 100,000 properties sold every year afterwards. This prediction has been underlined by research from a national newspaper which found that 20% of buy to let investors are looking to sell their […]

Landlords say buy to let sector will be damaged

Landlords around the UK say that the government’s continued assault on buy to let will end up causing serious damage to the market, according to one survey. Property management firm Orchard and Shipman says that 90% of the 500 landlords they questioned, said that the coming tax hikes will lead to higher rents for tenants. In addition, one in four landlords are planning to sell their buy to let properties because of the tax changes. Worryingly, one in five landlords also say they are planning to leave the buy to let sector altogether. Landlords are passionately committed   The firm’s chief executive, Shane Speirs, said: “Many property investors and landlords are passionately committed and will do what it takes to protect tenants but our research shows landlords are looking at ways of recovering a potential drop in revenue.” He added: “The buy to let market will, I believe, pull together to continue to provide accommodation for growing tenant demand.” The survey also reveals that 90% of landlords believe they should be able to deduct their legitimate expenses from tax bills. This is in response to the government’s plan to limit mortgage interest tax relief on a landlord’s income. Landlords are […]

Landlords stump up £4.5 billion in property damage repairs

Thousands of landlords in the UK are left out of pocket when a tenancy comes to an end with figures suggesting that the total repair bill for private rented homes is a shocking £4.5 billion a year. That’s the result of research by the Tenancy Deposit Scheme (TDS) who say the most common damage includes having to pay for broken appliances, ruined carpets and unauthorised decoration. In a report, TDS suggests that when it comes to deposit disputes damage to property accounts for 56% of all claims. In addition, around 19% of disputes saw tenants receiving 100% of their claim. Nearly 20% of deposit disputes saw agents and landlords being paid in full. For the balance of 61%, the deposit was shared out between the parties. ‘Landlords have a poor record’ $nbsp; Jax Kneppers, the founder of Imfuna Let, said: “Landlords feel their tenants are not held to account for damage caused and there’s little that can be done to protect their property. Landlords also have a poor record in winning their tenant dispute cases.” He points out that the situation could be changed dramatically with a few simple changes including a new and fairer tenancy agreement which incorporates a […]

Landlords face rocketing rent arrears

Landlords around the UK are seeing growing numbers of tenants falling into rent arrears, according to new research. The Tenant Arrears report from Your Move and Reeds Rains reveals that the number of tenants who are more than two months behind on their rent is now 84,200. That’s the highest number recorded since early 2013 and the number rose by nearly 14% between the second and third quarter of last year. A director of the estate agency, Adrian Gill, said: “The chances of tenants falling into arrears is very low and renting, generally, works for most people. “Over the last 10 years, the UK’s private rented sector has expanded quickly to provide millions of homes while absorbing a financial crisis. “Optimism among landlords feels reasonable with households earning more and a stable cost of living. Also the chance of falling into an unemployment is falling and paying rent is becoming easier and not harder.” Households in the private rented sector   However, Mr Gill pointed out that despite the country’s economic growth, there are many households in the private rented sector who do not yet feel any benefit. He said that many tenants are struggling to keep pace with rent […]

Government warned: ‘Lay off landlords’

The government has been warned to lay off private landlords and told to find other solutions to the UK’s current housing crisis. The warning has been made by LSL Property Services which says that landlords are now targets for the Bank of England and Government despite providing a crucial role in offering homes to 20% of the country’s population. A director of LSL, Adrian Gill, said: “Unconstructive policies and negative campaigns that attack landlords rather than supporting tenants will not help provide more homes or lower rents.” He added that the continuous criticism will have the opposite effect and force rents up for tenants. More than two years ago LSL predicted that the average rent in the UK for a private rented property would reach the £800 a month mark and its latest data shows this has now been achieved. Rents have fallen since September   From their regularly published index, the firm says that while rents have fallen since September, they have risen year-on-year by 4% and there are predicting more rises early in 2016. In addition, the index also reveals that rent arrears are a growing problem with tenant finances worsening and that landlords’ rental yields have also […]