Tuesday, February 25

Khalil: Is there a light at the end of the tunnel for landlords?

- November 20, 2017

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Research revelations

According to a recent report landlords’ confidence in their businesses – and in the health of the private rental sector as a whole – is at an all-time low.
An air of doom and gloom hangs over those in the private rented sector – and forthcoming legislation is seen as a guillotine hanging precariously over their already outstretched necks.

The BM Solutions survey found that:
• Only 36 per cent of landlords had confidence in their own businesses.
• And only 19 per cent had confidence in the near-term future of the rental sector.
You can read the full findings here: goo.gl/LWndVw

Yet, despite the doom and gloom that prevails there are actually many reasons for landlords to be cheerful.

The future of buy-to-let
Shawbrook Bank has commissioned a report that attempts to gaze into the crystal-ball of the future.
You can find the report here: goo.gl/QQAmCr

You’ll see that things, on many counts, look decidedly rosy.
• The number of people living in private rented property has increased from 11 per cent in 2004 to 19 per cent in 2014. And this growing trend looks set to continue.
• Over the medium-term it is likely that the costs associated with Stamp Duty’s higher rate will be passed on successfully to tenants.
• Brexit is the joker in the pack: its consequences are hard to predict. However, Shawbrook’s report suggests that its overall effect may be to constrain the housing market, thus raising rents.

There are some flecks of grey in the blue skies ahead. Yet, even these negatives are more a shuffling of the pack rather than a knocking down of the house of cards.
• It is expected that changes in mortgage tax relief may favour commercial landlords over private landlords. Commercial landlords will gain market share as properties no longer prove profitable for those needing a mortgage.
• Portfolio landlords will also find it harder to borrow under
the more stringent PRA (Prudential Regulation Authority) guidelines.

More reasons to be cheerful
Even today there are many ways that landlords can guarantee their income in turbulent times.
Khalil’s Rent Guarantee Scheme will lease your property from you for a period, and guarantee you an income every single month, regardless of whether the property is occupied or not.
We’ll handle all tenant relations and daily maintenance, so all you need do is sit back knowing that your rent will be paid.
Crystal-ball gazing is all very good.
But knowing exactly what the future will bring is so much better.

Phone: 01273 573960 Mobile: 07984 015669
Email: ahmed@khalilproperties.co.uk
Address: 124 Lewes Road, Brighton, BN2 3LG

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