- February 8, 2018
12 months of prosperity
There’s only one thing that buy-to-let experts agree on when considering the future of the private rental sector – and that is the fact that it is uncertain.
Landlords are standing at a crossroads – and no-one can say for sure which way we’re headed. But that doesn’t stop the great and good from trying to gaze into their crystal balls.
The factors that are creating such turmoil include:
• Stricter regulation
• Tax changes
• The threat of interest rate rises
• Tougher lending requirements
• And the rise of build-to-rent
It seems that everyone interprets how these will affect landlords in different ways. So, let’s listen to what those in the know say, and then let’s look at something that you can do to guarantee your success in a time of great uncertainty.
What the experts say:
Lucian Cook (Director of Residential Research at Savill’s) takes a very pessimistic view. He sees an almost inevitable decline of the mortgaged buy-to-let investor.
“The summer budget of 2015 marked the point at which politicians sought to discourage buy-to-let investment through tax policy. And the squeeze continues as mortgage regulation spreads across both small-scale and portfolio landlords. Interest rate rises and progressive cuts in tax relief will limit investor opportunity.”
Paul Shamplina (Founder of Landlord Action) places responsibility for landlords’ difficulties squarely at the feet of compliance rather than taxation.
“It has been another tough year for landlords. With so many legislative changes, it is more important than ever for landlords to fully understand their obligations in order to protect their investment and ensure they are adhering to new and existing laws.”
David Cox (Chief Executive of ARLA, the Association of Residential Letting Agents) suggests that it’s not all bad news. He sees hard times for some leading to lucrative rent increases for others.
“In terms of the supply of rental properties, the minimum energy efficiency standards coming into effect could see up to 300,000 properties being taken off the market. This will push rent costs up.”
Vanessa Warwick (Co-Founder of Property Tribes) takes this a stage further. She predicts a sea-change in the make-up of the landlord market as smaller landlords fall by the wayside.
“I believe that amateur and accidental landlords may not see any benefit in investing, and will likely seek to exit in 2018, and newbie landlords will be deterred. Rental supply may [therefore] contract, pushing rents up.”
Kate Faulkner (Property Market Analyst at Designs on Property) fails to see what all the doom and gloom is about. She suggests that, for those prepared to look hard enough, there are plenty of positives that can be built upon.
“There are still plenty of advantages for buy-to-let investors. Slower growth, coupled with a subdued sales market, means bargains may be available, and rental inflation is expected to reach a new high. Meanwhile, mortgage rates are still low, which can boost your returns.”
What you can do to succeed in 2018
In times of uncertainty it is good to know there is at least one thing that can be guaranteed. And if this happens to be your rent, then all the better!
Khalil’s Rent Guarantee Scheme offers you a recipe for success in the turbulent times ahead.
It offers you guaranteed rent – with no void periods – and also removes the burden of having to meet the constantly changing compliance requirements.
That’s why we are confident that being a landlord can be a lot easier for you in 2018.
We lease your property from you – and we agree a guaranteed rent with you. We take care of finding tenants, managing tenancies and ensuring your property is maintained and compliant.
And even when your property is empty it still pays you a monthly return on investment.
Nothing could be simpler.
And in a time of uncertainty, nothing could be so reassuring.