While demand for rental property is expected to remain high this year, it is clear many landlords are struggling in the industry. A recent study undertaken by the RLA suggests 34% of landlord intend on reducing their investment this year. The number of landlords who intend to sell some or all their rental property has increased from the figures found in the report issued this time last year.
Some landlords want to expand their property portfolio this year
For 2019, RLA found 19% of landlords sold property, and 12% of landlords have purchased property. Also, 12% of landlords suggest they are keen to expand their property portfolio this year, which is down on last years’ figures, which suggested 14% of landlords are keen to invest in property this year.
One issue which causes problems for landlords is additional stamp duty charged on buying extra property. 45% of landlords told RLA that this is a major issue for them.
More homes are needed across the country
Something which several bodies are calling for is more housing across the country. If this could be achieved, either through something announced in the Budget, or any other means, it would be welcomed by the property and letting industry.
David Smith is the policy director for the RLA, and he said; "This is yet more clear evidence of the sell-off of private rented housing largely due to the government’s extra tax on new rental homes. With a new government and a budget due, we need a shift in policy to one that supports investment because otherwise there will be a growing supply crisis in the private rented sector as demand continues to rise."
Some quick tips for landlords to improve their operations in 2020 include:
· Make sure your tax affairs are in order at the start of the year
· Familiarise yourself with new legislation, and changes to existing legislation
· Ensure your property has a valid Energy Performance Certificate, and try to improve the rating
· Review what maintenance and home improvements you need to make
· Review your budget and determine if you can allocate more money into maintenance and repair funds
· Review your mortgage and lending options to ensure you are on the best deal for your requirements
· Familiarise yourself with renewal dates for your insurance
If you follow these tips, you will enhance your chances of having a great year. If you are a landlord in South West London, and you are looking for assistance in managing your rental property, we can help.
Please get in touch with Holmes Estate Agents, and we will do what we can to ensure you have a great 2020, no matter what your plans are.