Nearly half of landlords set to adapt their strategy after taxation changes
Landlords in the UK are increasingly aware that they need to be adapting their strategies to ensure they are as effective as possible, after a raft of changes that have hit the private rented sector in the last two years.
Higher Stamp Duty rates and a ban on deducting mortgage interest from taxable income, among other issues, have made it more expensive to both invest and operate in the rented market. However, landlords are increasingly becoming aware of how changes affect their portfolio, and are adapting their strategies as a result.
According to a poll of UK landlords carried out by tenancy deposit scheme mydeposits, some 44 per cent of those landlords operating in the UK's private rented sector said they need to adapt their strategy in some way to deal with the way the market has changed.
The encouraging thing is that as many as 21 per cent of those who were surveyed said that they did not believe the changes that have come into effect will impact their investment in any way at all, while just 25 per cent said they felt the need to increase the rent they charge their tenants as a way to ensure they still make as strong a return as they are used to.
On top of this, only ten per cent of those surveyed said they felt like they might have to sell up and leave the private rented sector, which shows that even against a backdrop of change, there is still a large degree of positivity in the sector.
Further driving this point home is the fact that some 50 per cent of landlords said they had no intention of leaving the private rented market at any point in the future.
"Many landlords are trying to do everything themselves and often following unreliable or out of context information, whereas once they are professionally educated on what their options are, many choose to remain landlords and go on to prosper," said Tony Gimple, director of Less Tax for Landlords.
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01-September-17General Lettings News