Most Prs Landlords 'Still Make A Profit'
Despite regulatory changes, most landlords in the private rental sector are making a profit, a new report claims.
The report has been published by BM Solutions who say that 88% of those landlords it surveyed said they will still make money - despite their falling confidence in the overall market.
Also, those landlords with larger portfolios are feeling less secure than they once did with 75% of landlords who have between 11 and 19 properties saying profits have fallen.
The report highlights that 23% of landlords are planning to sell at least one of their homes this year with those with a portfolio of between 11 and 19 properties saying they are twice as likely to sell this year than they were last year.
The report also reveals that just 15% of landlords say they are looking to buy another property this year.
'Research paints a cautious picture'
The firm's chief executive, Phil Rickards, said: "Our research paints a cautious picture from one carried out in the last quarter when landlords said they were not experiencing any financial difficulties.
"The BTL industry has seen many regulatory changes over the last few years and the effects are clearly being felt."
He added: "However, the future is not entirely bleak with the proportion of landlords making a profit remaining at 88%, which equals the record high we saw in the third quarter of last year.
"It's clear the market is sensitive to the legislative and economic environment and this is reflected in the findings."
Landlords have new rules on electrical safety
Meanwhile, landlords in the PRS will have to meet tighter levels of electrical safety on rental properties after the introduction of new government rules.
An announcement by Heather Wheeler, the Minister for Housing, revealed that mandatory electrical inspections will now be carried out by 'competent and qualified' inspectors.
The new rules will detail the minimum level of qualifications and competence necessary for those who carry out inspections to ensure a rental home is safe from an electrical fault.
Government's drive to push up standards
The new rules are part of the government's drive to push up standards in the private rented sector and the Minister says the rules will offer 'clear accountability at every step of the inspection process'.
She added that the rules will 'not place excessive time and cost burdens on landlords' to implement.
For those landlords who do not comply with the new rules, then they will be facing tough financial penalties, she explained.
