Another day, another piece of good news for landlords.
A survey from Your Move and Reeds Rains suggest that there were 9,300 buy-to-let mortgage arrears of three months or more during the first quarter of 2016.
This represents the lowest quarterly level since the final quarter of 2007, where 7,500 cases were recorded.
Mortgage arrears falling
The results from the first three months of the year represent a fall of 9.7% since the final quarter of last year. During this period, 10,300 landlord mortgages were in arrears.
Adrian Gill, of Your Move and Reeds Rains, said, ‘the evidence is clear-landlords’ finances are the healthiest they’ve been for nearly a decade.’
Mr Gill attributes the falls in mortgage arrears to a drop in accidental landlord numbers, with a rise in dedicated investors committed to their investment.
Gill continued by saying, ‘the average property investor is more likely to have a business plan and a more professional approach to letting their property.’
As a buy-to-let investor, you will be well aware of the raft of regulatory changes that have recently been implemented by the Chancellor.
Mr Gill warns however that the next challenge facing you, ‘will be the coming changes to the tax relief of mortgage interest.’ He notes that for small investors, ‘the phasing out of tax allowances at the higher rate could be minimal if they don’t fall near the higher tax bands in the first place.’ However, if you are a landlord with an established portfolio, Gill warns, ‘you could be hit harder.’
In addition, Mr Gill said added that regardless of your situation, you should have a, ‘revised plan and proper advice to make sure you can continue to operate successfully under the new rules.’
Alongside gaining a sound knowledge of how the upcoming tax changes will affect you and your business, you must also remember the basics. Obtaining the correct landlord insurance is vital, as is familiarising yourself with gas safety, Right to Rent and energy efficiency responsibilities.
Keep checking back to Just Landlords for all of the most relevant information to ensure your investment is profitable!