Demand for private rental properties remains strong around the UK including Surrey and South West London, however despite this some landlords are looking to sell at least one of their properties due to the phasing out of mortgage interest relief.
The margins between those landlords who want to sell and those who want to add to their portfolios is slim with 22% wanting to sell their BTL and 18% wanting to buy more properties according to a report by the Residential Landlord Association (RLA) landlords who say that some BTL landlords are combating tax increases by reflecting them in increased rental prices for properties.
Their research also showed that 33% of landlords have experienced greater demand for rental properties, with a continued trend of there not being enough supply for demand, with 47% of those landlords surveyed stating that they expect to increase rents over the next year.
RLA chairman Alan Ward commented: ‘As demand continues to increase for homes to rent, punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation. Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.’
‘To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need,’ he added.
Landlords have also showed their concern about the impact of the introduction of the universal credit as 38% have reported tenants going into rental arrears in the past 12 months. These rent arrears caused by changes to housing benefit have resulted in many landlords trying to regain possession. That’s why many BTL landlords are choosing to use the services of a Property Management company such as Finch & Co as they will be able to keep any rental arrears to a minimum.