Being a landlord is rarely easy, in fact, even when the economy is doing well, the amount of responsibilities you have can make it a stressful occupation. However, right now the economy is extremely precarious and so the property and private rental markets are constantly fluctuating. This means that landlords always need to stay one step ahead in order to ensure that their businesses will be successful, but where do you start?
The Essential Information
Finding information on the private rental sector is relatively easy, as there are a number of websites, newspapers and magazines that publish articles on a daily basis.
However, not all information is as useful as others, and some articles tend to contradict each other, or are written with an agenda in mind.
However, there are some facts about the private rental sector and the state of the UK economy that nearly all publications agree on. They include:
- The amount of people looking for private rented accommodation has increased substantially over the past few years.
- The cost of living has risen steadily while wages have remained mainly stagnant. This means that many people are now struggling to save for a mortgage and have less disposable income.
- Those between the ages of 18 and 30 and/or first time buyers are finding it the most difficult when it comes to finding affordable housing.
- There is a housing crisis in the UK where there is an insufficient amount of affordable housing to meet demand.
- Even though a number of people working in the private rental sector agree on these facts, there is little consensus on either what caused the current situation or the best way to resolve it.
What This Means for Landlords
It may be easy to think that as there is now so much demand for private rental accommodation, landlords can secure a steady income with little effort. However, while it is true that landlords are now finding it easier to secure tenants for their properties, the housing crisis has led to the Government cracking down on landlords and introducing new legislation.
In theory, new legislation should improve the private rental sector for both tenants and landlords, as it means there will be fewer disagreements between both. However, so far the schemes that have been proposed have all had their disadvantages, such as landlord registration, which has helped in some areas of the UK and hindered others. Over the next few years it is extremely likely that the Government will introduce new legislation, schemes and incentives in order to improve the private rental sector. Whether these will be successful is yet to be seen, however, it is important that landlords expect things to change in the near future.
How to Protect Your Business
Whether you own one, ten, or hundreds of properties, it’s essential you have a plan for the future, otherwise you could find yourself in both monetary and legal difficulties. As we mentioned previously, it can sometimes be difficult to stay on top of everything, which is why it is important you know where you can find the most relevant information for you.
Letting agents, landlord associations and solicitors all provide up-to-date and helpful information, however, it is important you try and make logical decisions on your own as well. For example, make sure you always stick to your budget, keep your paperwork in order and have a contingency plan in place should you come into difficulties.
The Just Landlords blog contains in-depth articles on how you can protect your business and improve it in the future. However, if you would like us to write an article about a subject you feel is important, please feel free to get in touch via our Twitter or Facebook pages.
- Improving the Rented Housing Sector. (2013). Retrieved from the GOV.UK website: https://www.gov.uk/government/policies/improving-the-rented-housing-sector–2/supporting-pages/private-rented-sector
- Housing Services. (n.d.). Retrieved from the Crisis website: https://www.crisis.org.uk/pages/crisis-private-renting.html
- Private Rented Sector. (2014). Retrieved from The Guardian website: https://www.theguardian.com/housing-network/private-rented-sector
Disclaimer: This article is for information only and is not official guidance, FCA approved, or legally precise. Just Landlords has used all reasonable care in compiling the information but make no warranty as to its accuracy. If you require information on landlord legislation or best practices please contact your legal representative. For details see our conditions.