As all data presented recently points to a strong demand for private rented properties, on the surface it may appear landlords are faring better than most in these unstable economic times.
However, digging a little deeper, there are some serious and significant flaws that landlords are facing, which could cause major issues, especially next year. While the up to date research in the sector clearly shows that rents are increasing for the landlord, statistics published by the NLA (National Landlords Association), indicates that nearly half of possessions by landlords are a direct result of the tenant’s failure to pay the rent.
It can take anywhere from 3 – 5 months for an eviction process and for a landlord to finally gain possession, which can cause extensive problems on BTL payments. Compounded with the trouble of lengthy eviction procedures, landlords also face legal costs, loss of rent and repair and maintenance to damage. For landlords with small portfolios, this could mean all the difference, resulting in BTL repossessions. As an industry leader, Legal 4 Landlords have addressed these issues, resulting in a 96% success rate with just a notice 8 administered.
Sample research captured by Legal 4 Landlords in-house data, shows that it’s not just LHA tenants who dominate the eviction rankings, but possessions are now closing pace on white and blue collar workers, implying that private and public sector workers are feeling the pinch amid government cuts as they struggle to meet their rental commitments on properties.
The recent 13% increase in buy-to-let mortgages shows clearly as to where housing trends are leading. The concern, however in next years LHA cuts and the government’s impending switch to measure inflation through the consumer price index (CPI) from the current Retail Price Index (RPI) is a worrying issue for landlords.