Some 87% of landlords confess
Many landlords are finding being a landlord is getting tough. They find it not that rewarding financially and quite stressful with all the pitfalls that some of recent legislation and tax burdens.
One of the most stressful jobs landlords report is dealing with tax returns. New landlords find managing residential property to be much more involved than they had anticipated.
Some 87% of landlords confessed to underestimating the costs involved with buy-to-let, including repairs and upkeep, insurance and initial legal and conveyancing fees.
landlords under the age of 55 are also more likely to admit that managing a buy-to-let has become an annoyance (81%), compared to 39% for investors aged 55 or over.
The latest research from Octopus Choice suggests that Britain’s buy-to-let landlords are divided over their future, due to recent tax and market changes.
The findings revealed that 56% of buy-to-let investors want to keep or buy more rental properties, while 44% are looking to sell.
44% are looking to sell
With interest rates at historic lows and very low return on deposit accounts investors have felt property is an investment alternative to leaving money on deposit earning low returns. Some landlords still view the buy to let market as a better option for investing. However they admit they were ill prepared for the stress of letting a property.
According to Octopus Choice, as the market consolidates buy-to-let investors are split across the country on what to do next, with many facing a dilemma on whether to stay or leave the buy to let sector.
Sam Handfield-Jones, head of Octopus Choice, said: “Brits still have an incessant love affair with bricks and mortar – but the hassle and cost of buy-to-let is a source of growing frustration, and some landlords may find that their once reliable day-to-day income is becoming harder and harder to come by. But this isn’t the case across all parts of the market, with money still to be made from the right property in the right region.”
British Landlords Association is supporting this challenge
Mr Hanson from the British Landlords Association said the buy to let sector is shrinking as landlords leave the sector to invest else where, most landlord do not want the stress that goes with being a landlord as things are.
Some of the housing legislation that is in force and more coming into force 1st October this year, does and will treat landlords breaching some of their legal obligations as criminal’s. Landlords currently have the burden of the “right to rent” legislation, which landlords feel is unfair. This legislation is being challenged in the court currently. The British Landlords Association is supporting this challenge.