Landlords are braced for PRS interference from Government

AFS Team·5 March 2020·4 min read
Landlords are braced for PRS interference from Government

Landlords are braced for PRS interference from Government

Most landlords in the UK are expecting more Government intervention in the private rental sector, one survey reveals.

The findings from Foundation Home Loans reveals that up to 70% of landlords in the UK are anticipating government ‘interference’ in the buy to let sector this year.

In addition, 72% of landlords believe that individual licensing for every landlord in the sector and for every property is 'likely'.

And 38% say they can envisage a rent cap being introduced for private rental properties.

When landlords were asked if they were in favour of a rent cap, 77% said they were not, while 12% said they might be in favour. Another 9% did not know and 2% said they definitely supported the imposition of rent caps.

'Most landlords have a wait-and-see approach'

Foundation Home Loans marketing director, Jeff Knight, said: "While most landlords have a wait-and-see approach to the government and any anticipated intervention in the buy to let market, it's noticeable that many believe there will be some kind of action.

"Landlords appear resigned, interestingly, to minimum tenancy terms being introduced with more action for HMO landlords and individual licensing."

He says there is a greater degree of uncertainty about what might be coming in 2020 and he urges the government to 'be more friendly' to the country's landlords in the Budget.

Other highlights from the survey reveal that 32% of landlords believe that stamp duty will increase from its 3% extra charge level, while 7% believe this rate will be cut.

The survey also highlights growing optimism among landlords and this has increased for the first time in a year.

Around 25% of landlords say that tenant demand has increased in the last quarter by 3%, and those landlords with a portfolio of at least 11 properties are more positive on the rental yield outlook than those landlords who have smaller portfolios.

Londoners believe BTL still a 'good investment'

Meanwhile, a survey has revealed that the vast majority of people living in London believe that buy to let is still a good investment opportunity, despite falling yields.

According to Perrys Chartered Accountants, their survey highlights that 82% of those living in the capital believe in buy to let and when asked what is putting them off from investing, 38% pointed to increasing tax and rates of stamp duty.

A spokesman for the firm said: "Despite what current market indications and the drop-off in the number of purchases suggest, buy to let is still a good long-term investment.

"It's interesting that younger generations see it still as a way to financially plan for the future."

The accountancy firm says that investors need to consider lots of issues before taking the leap into investing, including income tax and stand duty charges.