The head of franchise giant Belvoir says government interference in the rental sector is likely to result in a rise in rents throughout 2018 and into 2019.
"As 2018 progresses, landlords and tenants will find themselves shouldered with an extra burden of cost due to continued government interference in the rental market, which includes a decision to ban tenant fees and the implementation of punitive tax changes,” says Dorian Gonsalves, chief executive of Belvoir, which is now the UK’s largest High Street property franchise.
Gonsalves says that his firm’s latest rental index shows that rents increased by just £3 a month compared to the same period last year, which demonstrates that the rental market is working well for most landlords and tenants across the country.
However, as a consequence of the impact of government policies he says increases are on the way. “This is a real shame, as in our experience many landlords have resisted increasing rents when they have a tenant in situ, but this is likely to change” he adds.
But he has not seen any sign of an exodus from the sector by investors, despite political issues.
“With all the uncertainty surrounding Brexit, we believe that property remains a simple, unsophisticated and reliable investment for over two million UK landlords. We are, however, noticing that those new landlords who are entering the sector, are doing so with lower borrowing, and they are looking for a stronger return on their cash.
“To many of the UK’s smaller investors, property represents a relatively strong investment, and more importantly, it is an asset that they can touch, see and pass on to family members in the future. We predict that this is unlikely to change for a very long time."
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I am a good landlord with modern properties and am all for getting rid of Landlords from hell !
They damage all of the good landlords.
I have paid my taxes from day one and maintain my properties.
I want respect from the government and be treated like any other business and be able to offset all my costs etc.
I want a level playing field and want speedy,low cost help to evict bad tenants who damage property and do not pay their rents.
All landlords want is tenants that value their home and pay their rent,its not rocket science!
May I suggest landlords that have not paid their taxes are never ever allowed in the future to claim any costs whatsoever(when caught) and are put out of business.
Those that Have paid their taxes should be REWARDED and allowed to claim all costs and expenses even on improvements to the property! After all we have been contibuting to the coffers Dear Chancellor!
I fully agree, I also maintain my property to a high standard and have yet to increase rent for any tenant once they have moved in, even those who live in the property for many years.
However, the changes to tax regarding the interest on my mortgage payments and the removal of the 10% wear and tear allowance, means this year i will have to raise rents. This is not because I want more money personally, it will be solely to meet the increase in my tax.
When I hear Mrs May use the term "the just about managing" it infuriates me. The tax changes for landlords will hit precisely that group.
By my maths even after a raise in rents I will still be paying considerably more tax, enough to make my business unsustainable. My one hope is that when landlords sell off their properties the banking industry will wake up to the needs of first time buyers and actually lend them some money, and secondly start to lend above 4 times their earnings.
That at least could help "generation rent".
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