Being a landlord is not easy, they are navigating constantly changing laws, buying and managing multiple properties and tackling problem tenants, there’s a lot to deal with.
Rightmove revealed last week that nearly a quarter of landlords it canvassed are reducing their portfolios as the government’s assault on the buy-to-let sector continues.
The increased costs following the tenant fees ban, drastic cuts to mortgage interest relief and reductions in expenses landlords can claim for wear and tear mean that, of the landlords who talked to them, 13% said they are planning to shrink their portfolios while an astonishing 11% reported plans to sell their entire property holdings.
Rightmove’s housing market analyst Miles Shipside said:
“Worryingly for tenants there are signs that the stock shortage may worsen if some landlords follow through with their plans to sell up, though an increase in plans for build to rent properties may help to fill some of the gap.
“The overall feeling among those landlords who are planning to exit the market is one of frustration with many telling us that the tax changes mean it’s no longer financially attractive to keep their properties.”
Changing Laws & Taxes:
Not only is the full implementation of landlord stamp duty a concern but also the introduction of the new Homes (Fitness for Human Habitation) Act 2018, which came into force on 20th March has further highlighted the need for landlords to maintain their properties. Failure to do so could result in court proceedings where the tenant could be awarded damages if the property does not meet the standards required by the Act.”
Future debt threats to landlords:
What negative equity solutions are available:
We understand sometimes circumstances change that you cannot control. We are here to help you get out of these situations and get you moving on with your life.
Whether you feel stuck with a property you no longer want, you have a rental property that no longer makes financial sense, perhaps due to negative equity, or you have an interest only term coming to an end with no way to repay the loan, there are solutions.
Landlord Debt Advisory has helped landlords to write off over £126 million of negative equity debt.
We can help you with the following situations:
- Mortgage Mis-selling complaint (all these points will be hyperlinked to
- Mortgage re-negotiation
- Negative Equity Settlement
- Property Debt IVA
What is the next step?
Landlord Debt Advisory (part of the CD Fairfield group) is authorised and regulated by the FCA to review, advise and represent UK property owners in relation to mortgage debt. We have completed over 3000 case reviews, advising landlords and homeowners from every walk of life. Why not tap into our experience today and see how we can help you? Call us on 0161 222 4311.