Exodus Of 'Fed-Up' Landlords Predicted
A massive exodus of buy to let landlords from the rental sector is getting close as they become increasingly fed-up with the hostile environment created by the government.
In a survey carried out by insurer LV=, they found that 41% of the UK's private landlords say they are considering selling up and leaving the market.
That equates to 600,000 landlords and another 10% say they are considering a similar move.
Among the reasons for the exodus is that landlords are increasingly facing diminishing returns but having to commit more time and money to running their rental properties.
LV='s managing director, Heather Smith, said: "Being a landlord is not without challenges and it's clear many feel the strain due to regulatory and tax changes."
The cost to a landlord for running their BTL property
The insurance firm also says that the cost to a landlord for running their BTL property is also creating issues.
They say that up to 52% of landlords have spent money on refurbishing their rental homes over the past year.
The research will also create a worry for letting agents who have landlords as clients.
The findings also coincide with a report published by mortgage lender, Foundation Home Loans, which found that nearly half of landlords would avoid investing in buy to let now.
They say that rather than invest in their BTL property, they would opt to remain out of the market, pointing to government intervention and regulatory changes.
The survey found that 40% of landlords would still invest in their BTL property stating that it provides better returns than other investment choices.
Also, just 25% of landlords say they will put up rents over the next 12 months, while most landlords say they are renting at least one of their homes at below its market value.
Welsh government publishes tenant fees ban guidance
Meanwhile, the Welsh government has published its guidance for landlords to help with the upcoming tenant fees ban.
The ban comes into force from 1 September and is similar to the ban introduced in June in England.
The guidance outlines which fees that letting agents and landlords will and will not be able to charge for after the ban comes into force.
However, any tenancy agreement entered before 1 September is not subject to the act's requirements.
The guidance makes clear which are permitted payments, including rent and security deposits, as well as any default fees which may be charged should a tenant default on their contract.
