Tax measures and regulatory changes are the two biggest areas of concern for British landlords but many are also concerned about tenant demand, according to new research.
Indeed a fifth of landlords saw levels of client demand as their primary concern, a new poll from Upad, but despite these concerns, an overwhelming 66% of landlords had no intention of changing their portfolios in the coming two to five years.
The survey also found that of those planning to continue in the buy to let market, an overwhelming majority felt that managing and mitigating void periods would be the factor most likely to keep them awake at night. Some 13% cited this as quite important, whilst a resounding 74% claimed it would be a very important consideration moving forward.
Claire Rostron, who has been a landlord for over eight years, said that she feel it is important to feel confident about being able to get the right type tenants and generate an income. ‘Interest from unsuitable tenants can be as frustrating as too little interest. Being in control of client demand and managing the quality and suitability of my tenants has been one less thing to worry about,’ she explained.
Part time landlord Laura Dawson told the survey that recent tax changes have made many landlords question their future in the sector. ‘I’m viewing my portfolio as a long term investment strategy so have no immediate plans to change anything,’ she said.
‘However, what is often of more concern, is the impact that is felt between tenancies when a property is delivering no rental income. The market is currently very buoyant so this is less of a concern right now, but that can change at any time and when a property does stand empty, the landlord starts to rack up costs,’ she pointed out.
‘The longer a property takes to let, the less attractive it becomes to prospective tenants, not only because it drops further down the listings, but also because it becomes perceived as unpopular. Quickly securing quality tenants is, therefore, vital,’ she added.
James Davis, founder of Upad and himself a landlord, believes it is easy to assume that landlords are most troubled by the big issues of the day. ‘Whilst these issues clearly do concern landlords, it is often the more mundane aspects of renting a property that have an impact on how a landlord chooses to manage his or her portfolio to reduce the stress levels associated with doing so,’ he said.
