Let’s get serious
The National Landlords Association has reported that one in five of its members is thinking of getting out of property. It’s an alarming number, but not surprising given the changes that have been imposed. Those thinking of leaving tend to be those in the buy-to-let business whose returns are shrinking. Tax changes, potential interest rate rises and new mortgage affordability tests are cited as reasons, but there is still money to be made by the small-scale landlord.
It won’t be easy, and landlords will have to be at the top of their game to stay profitable, but it can be done. It may be that the focus has to change from creating an income stream to one of long-term capital gain. It might be landlords have to choose their locations and properties more carefully.
Perhaps they’ll have to explore new ideas – student lets or higher spec properties, and of course, controlling costs will be vital. But let’s face it there is no shortage of demand for quality housing and renting is now a long-term choice for many. Find a niche and exploit it. Use your skills and find the right support. It was easy before, it isn’t now and it’s getting tougher, but when the going gets tough…
Those who are willing and able to adapt and have the right attitude will be fine.