Landlords Lose confidence
An article on The National Landlords Association web site suggests that landlords are losing confidence in rental returns. Obviously property investors look for a degree of stable income from their investments. Landlords optimism has fallen by 15% over the last two years. This fall in optimism is in part attributed to, the then Chancellor, George Osbourne’s plan to remove Mortgage interest relief announced in July 2015.
This sentiment contrast with the figures that show rental yield across the Uk have remained stable. Increased taxation and higher costs relating to legislative compliance are a key factor in this lose of confidence.
Regionally, landlords in the East Midlands currently generate the highest rental yields at 6.9 per cent. By contrast, landlords in outer London generate the lowest yields at 5 per cent.
Another factor that must be taken into consideration, but not mentioned in the NLA article, is the impact of specialist student accommodation developments springing up in huge numbers across the country. Levels of income that was once derived from student lets will undoubtedly be affected by these new developments.
Hands off landlords
As a specialist property management company we work to alleviate the pressures that landlords experience. The biggest thing that we can do to help landlords is to guarantee rents for the duration of the management agreement. Most landlords have experienced void periods at some time, some longer than others! Their loses during void periods are not just the income from the tenant but also the recurring costs. As any landlord will know; extended void periods, for whatever reason, can prove to be costly. Becoming a Hands of Landlord and putting your property into the hands of a management company can be the solution.
Legislative changes and day to day management headaches make the prospect of becoming a Hands off Landlord very appealing especially for landlords operating large portfolios.
Landlords wishing to enjoy the many benefits of a professionally managed property portfolio should contact the Serviced Property Group Ltd.
- Guaranteed rent
- Fully Managed
- Regular Property Inspections