Improving yields throughout 2023 may stop more landlords quitting - and, in addition, rental reforms are unlikely to be as bad as some suggest.
That’s the view of Leaders Romans Group, one of the largest lettings agency groups.
It says growth in the lettings industry is likely to be one of the results of the mortgage turbulence of 2022.
“Aspiring investors are well placed to look to purchase properties being marketed at reasonable value” says the firm, noting that the current lack of quality rental stock means improved yields due to increasing rental prices and reducing sales prices.
“We therefore, expect to see a reduction in the amount of landlords selling, which will help supply. The buying landscape will still force many potential tenants into the already-congested rental space, with supply unlikely to catch up to the demand quickly enough” it notes.
It adds that while the harsh taxation regime against landlords will remain in place this year, improving yields versus reducing sale prices are expected to cut the number of landlords selling and help supply.
“In the meantime, landlords should also be seeking value-add approaches to maximise their investment performance such as setting up as a limited company with technical, fund and share structure management services via a dedicated provider.”
However the agency plays down the impact of additional government changes on their way.
It says: “The Rental Reform Bill aims to level the playing field for tenants and whilst the new laws will need to be understood, the changes around Section 21 and possession rights are not nearly as punitive for landlords as some of the headlines suggest.
“In addition, future-proofing investments by prioritising energy efficiency not only makes those properties attractive during today’s cost of living crisis but ensures they are well placed for changes to EPCs in the years ahead.”
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Self-interest in this article. I am afraid the loss of Section 21 and being required to reach EPC C are definite reasons to end letting property - any other decision is irrational.
Exactly. Another advertorial. Loss of control over one’s property and massive costs to upgrade are a BIG NO. Especially when you are expected to insulate the whole building and you can’t get the tenant out to do it. We are expected to find builders who want to work with a tenant living there. Ha ha ha ha ha. I’m laughing all the way to the estate agents to get rid.
😂💰 this article has a funny side…. Sell Sell Sell.
How on earth are yields going to improve for anyone with a mortgage?
The article is a joke, but irrelevant anyway as in a couple of years, god help us, we will have a Labour government
😱😱😱 I agree, and hopefully by then I won’t be far off selling my last one 💵💵
Stick your head in the sand and hope it all goes away
Never heard of this Group and would avoid if i do.
They are talking utter nonsense.
Minds have been made up already and BTL though not dead is a wounded animal with no sign of recovery.
I Googled them. 32 branches around West London and Berkshire. They are letting agents and not to be trusted. They all spout hot air about the market. Usually to show encouraging signs and get new business. They are unlikely to kill their own business and say BTL is dead. We have no landlords coming in the door. It's all sales. We've made loads of redundancies etc.
I can see my letting agent always has lots of empty desks...
I would think things are tough for estate agents right now. For Letting agents, any advert will generate a large response, but takes a bit of work to find the best tenants. With cost of living presumably they have had to change their criteria?
They should be able to shortlist tenants very quickly by requesting key referencing documents upfront. Not to hard to find a good tenant now.
A self interested / promotion article, clearly not living in the world of the Landlord!
I'd agree there will be increased demand as people can't afford to buy, and rents will go up, but not yields for any one with mortgages.
I was content that I could use my salary to pay off my mortgage. But since I have a lot less confidence I will get my property back I prefer to just pay the interest and at least keep the bank's money in. Hopefully they can repossess it one day if we go back the the 70s and 80s style lifetime tenants situation. I know this is not what is proposed but as historically a Tory supporter I don't trust them at all, and Labour even less so.
Had an EPC done today up from a 'D' to a 72 'C' , replaced a 25 yr old boiler, increased loft insulation to 350mm and led bulbs all round, so that's another one that I won't be forced to sell.
Also new tenants move in tomorrow, both working and a cast iron guarantor, it's been a good day.
Nice to read a good news story here, well done
I dont know where to start, and dont have time to do so, save to say whichever anonymous person at LRG wrote this hasnt been near the dance floor for quite some time.
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