Private rented sector policy changes are putting financial pressure on British landlords
Landlords in Britain feel under pressure from multiple changes in the private rented sector and as a result a fifth are considering selling up, mainly due to additional costs. They are also considering increasing rents, reducing the amount they spend on maintenance and manging their properties themselves rather than using letting agents, according to a YouGov survey for The Mortgage Works, lender Nationwide’s buy to let arm.
The research is published as the Nationwide announces a new cross-industry body to support the estimated five million households in the UK’s private rented sector. The Partnership Board has been launched to help landlords deliver decent, affordable homes for their tenants.
The Nationwide Partnership Board is backed by the National Landlords Association (NLA), the Association of Residential Letting Agents (ARLA), Shelter, Countrywide and The Nationwide Foundation and will monitor the health and development of the private rented sector, discuss issues of mutual concern and provide policy suggestions to Government.
The survey found that many landlords have shielded their tenants from the financial impact of the changes with 29% having never increased their rent. However, some 44% are now considering increasing rents. It also reveals that 10% will reduce the amount they spend on property maintenance, 14% intend to start managing the property themselves, rather than using an agent and 22% are considering selling up.
The research also found that 36% were not aware of decreases to mortgage interest tax relief which was introduced in April 2017 and will steadily decrease over the next few years. Also, 32% were unaware of the additional stamp duty on additional homes from April 2016.