Landlords Seek External Advice To Keep Pace With Rapidly Changing Regulations
Explains John Heron, Director, Paragon Mortgages: “The buy to let market is changing fast on the back of new regulations. This faster pace of changes is unsettling both professional landlords as well as newcomers”.
The BDRC Landlords Panel survey in the first three months of 2013 showed that 75 percent of those surveyed had a significant requirement for advice on landlord matters and those landlords owning more properties required them most urgently. This hints at a market opportunity for consultancy on landlord rules in line with the latest regulations.
Impact of recent Changes
The concerns raised by landlords have been fuelled by the recent changes in legislation and tax.
• About 46 percent of landlords wanted help and advice as they were finding it difficult to keep up with changes in legislation.
• Another 43 percent were worried about the impact of Universal Credit on the Private Rented Sector (PRS).
• About 90 percent of landlords felt the going was tough in the light of many new taxes and regulations coupled with the stipulation on landlords to check the immigration status of their tenants, as contained in the Queen's Speech recently.
• About 54 percent predict additional licensing will hit them hard.
• Some 53 percent believed that Capital Gains Tax will hurt them.
• About 49 percent have grave concerns about the Council Tax.
Interestingly many of the landlords were greatly experienced, and had been owning buy to let properties for a considerable time. However, as rules are changing fast even the veterans are seeking outside help for the latest information.
What A Professional Letting Agent Advices
Rentals London, a leading letting agency, called upon all customers, experienced or otherwise, to do their homework well before buying rental properties. Buy to let is never a short term investment. For many landlords, including those with huge experience of decades, their portfolios are an alternative to pension when they retire.
Rentals London advised landlords to seek membership in professional organisations such as the National Landlords Association, to get more trade information and support for running a successful rental portfolio.
Other organisations offering advice to landlords include the Residential Landlords Association (RLA) and the Association of Residential Lettings Agents (ARLA).
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