Changes to policy in the private rented sector has left landlords out of pocket
Landlords in the UK's private rented sector have faced widespread policy changes over the last few years, including a three per cent levy on Stamp Duty for investments and a change in mortgage relief. But a new survey suggests the government may need to reassess these, after it was revealed that many landlords are feeling the financial pressures.
According to a new YouGov survey for The Mortgage Works, the majority of landlords are starting to feel the pressure of the changes, with as many as a fifth considering selling at least some of their stock as a result.
It's not just landlords who are going to be feeling the pressure either. According to the findings from the survey, a growing number are considering passing their additional costs down to tenants to compensate for their own loss.
While 29 per cent say they have not increased rent and have shielded their tenants from the effects of the policy changes, 44 per cent said they are going to have to start considering higher rental charges moving forward.
These are not the only potential changes to operations that landlords are considering making, however. The survey also discovered that ten per cent are going to start spending less on maintenance where they can to make savings, while 14 per cent are considering managing the property themselves, and 22 per cent want to at least look at selling some of their stock to compensate.
"Being able to find a decent affordable home is one of the most pressing issues many people face today. Landlords play a vital role in providing homes and choice, where they might not otherwise exist," said Joe Garner, chief executive of the Nationwide Building Society.
"Our research suggests most want to manage their property well and look after their tenants. However, because letting one or two properties is often not a landlord’s full-time job, many are left struggling to keep up with the ever growing list of responsibilities, as well as the personal financial impact the recent changes may bring," he added.22-September-17General Lettings News