Research among landlords shows many are waiting to see the full extent of government’s renting reform proposals before making business decision.
A fifth (22%) of landlords would reconsider selling their properties if they had more clarity on legislation and regulations, a new study finds.
The results suggest that many are concerned about the rental market’s future and are waiting to hear what the imminent Renters Reform Bill contains before making a decision about investments.
With the government due to announce plans for a national landlord register and scrapping Section 21 evictions, half of landlords (50%) say they’re worried about further regulation of the PRS, according to the Simply Business survey.
With uncertainty in the market, 58% of landlords believe confusing and rapidly changing government legislation is the biggest challenge they face. Combined with rising costs, just under half (45%) cite these changes as a significant threat to the rental market, with almost a fifth (18%) reporting being worried about their ability to maintain their properties as a result.
Simply Business reports that 33% of landlords have found that their portfolio is not as profitable as it was before the 2017 reduction in buy-to-let mortgage tax relief, but despite this, almost a quarter (23%) plan to buy another property this year.
Alan Thomas (pictured), UK CEO at Simply Business, says that with countless changes to regulations, along with rising costs over the last few years, landlords are feeling the squeeze.
He adds: “Our study has revealed the worries faced by those in the UK, with many questioning the value of their portfolio and some even considering selling. With landlords offering much-needed accommodation to over 4.4 million households, the hit to our communities could be devastating.”