- October 16, 2017
Addressing landlord concerns
These are uncertain times for landlords. First there was Brexit, and concerns over the effects of this hit the housing market fast and hard. And now there’s the never-ending threat of legislative change.
• Buy-to-let tax relief has been stripped down.
• Landlords are legally responsible for ensuring tenants have a ‘right to rent’.
• Letting agent fees will be banned, with landlords fearing they may have to pick up the tab.
• Section 21 eviction requirements are increasingly stringent.
• Strict energy efficiency rules look set to catch many rental homes in their net.
And the list goes on.
A crisis in confidence
Landlords are facing a crisis in confidence.
This is something that, in my experience, affects all landlords. From portfolio landlords to accidental landlords, confidence in their investments are at an all-time low.
When I speak to Brighton landlords they tell me that the prospect of a stable rental yield is a thing of the past.
Market volatility, legislative burden and increased costs have caught local landlords in a triangulated crossfire from which there appears to be no escape.
Don’t just take my word for it
Of course, hearsay is a remarkably unreliable barometer.
But, recent research by the National Landlords Association (NLA), an organisation with its finger firmly on landlords’ pulses, gives a more measured assessment.
The NLA’s landlord panel for the second quarter of 2017 asked its members to quantify how confident they felt about future rental yields.
Rental yields were clearly defined as the actual percentage that will be received after taking into account current rental income, the value of the property portfolio, mortgage payments, and maintenance and other costs.
What the NLA found was that optimism about rental yields has dropped from 64% in the second quarter of 2015 to 49% today.
Which is to say that less than half of all landlords are actually confident that they can rely on their rental yield.
Commenting on their findings Richard Lambert, the chief executive of the NLA, said:
“There is a steady increase in landlords losing confidence in their ability to make a profit from letting property. Many will now be feeling the impact of greater taxation and the costs of complying with regulation, which are eating away at their profits.”
He concluded that landlords are now “treading the fine line between profit and loss”.
Is there a safer, smarter alternative for landlords?
In a turbulent sea of uncertainty, you will be pleased to know that an island of stability is still available to landlords.
You can’t guarantee everything but you can guarantee your rent.
Knowing exactly what you will receive from your properties month in and month out helps you ensure that your rental yield figures add up favourably.
And that’s why my Rent Guarantee Scheme puts the confidence back in letting.
How the Rent Guarantee Scheme works
It’s not just risk that the Scheme removes: it also takes away the hassle.
We deal with the tenants, we handle everyday maintenance and we make sure your property complies with the latest letting legislation.
Here’s how simple it is:
• You lease your property to us for up to five years.
• We guarantee you rent every single month – whether the property is occupied or not.
• We return your property to you in the same condition that we received it – or you can ask us to carry on because life has never been so easy.
If you are concerned about maintaining your rental yield in the future, then the Rent Guarantee Scheme offers you complete peace of mind.
And that, these days, is a rare thing indeed!