Being a landlord can be very difficult and there are many challenges that must be overcome, including legislative changes. In recent times, there have been notable rental fee increases and to the outsider, this will seem like positive news for landlords.
If all other things were equal, an increase in rent would be pleasing for landlords but there is an increasing array of costs of financial pressures placed on rental market professionals which means that life is far from perfect for landlords these days.
While there are some positive signs for the UK rental market in 2018, it would be wrong to assume that everything was going well. A recent statement from the Chief Executive of ARLA Propertymark, David Cox, hints at some issues in the market.
Tax losses have impacted on landlords
The issue of landlords increasing rental fees to recoup losses from tax changes was mentioned. There have been many different financial pressures being placed on landlords of late and at some point, these costs must be passed on. Of course, there is also the likelihood that at some point, tenants will reach their level with respect to what they can afford to pay in rental fees. This means many landlords will have to consider other ways to generate income.
Findings from the organisation suggest that 23% of tenants experienced an increase in their rent in March of 2018. This was attributed to recent tax losses and this increase was the largest in a single month since September of 2017.
There may be further legislative changes for landlords to contend with
Landlords should also be aware that there may be further regulations and legislative change to contend with later in the year or next year. This is because at the end of April, the UK Government announced they would review current regulations regarding carbon monoxide alarms in rental property, so there could be further legislative changes to contend with.
The current regulations were put in place in October of 2015, but the review will consider if these regulations are fit for purpose or if they need to be revised. ARLA Propertymark is hoping to be part of the review process, but they have also requested that any changes made are sensible and that landlords are provided sufficient time to make changes to their property without being penalised.
One factor that will be considered in the review is whether the cost of carbon monoxide alarms have negatively impacted on them being installed in rental property. While most people would agree that it is difficult to place a price on health and safety, landlords face many financial challenges and pressures. It is therefore important that any changes which are introduced are necessary and will make a positive impact on property. If that can be achieved, many landlords and letting agents will consider this to be a satisfactory amendment to existing regulations.
At Williams of Petersfield, we know how difficult life can be for landlords, and we know that many professionals are looking for support and guidance. We are always available to provide support and if you want to make informed decisions with regards legislative changes, speak with the local experts and specialists.