ACCORDING to the Office for National Statistics rents have risen approximately 10% since 2011 and that is great news for landlords. In the same time though, property prices have risen by approximately 20%, so is even better for homeowners.
But the spectre of rising tax costs and interest rates are dampening the landlord market now. These are going to add significant costs to their property rentals and force price rises as well as more efficient operating.
Increased regulation in the private rented sector is now adding more costs as well. Carbon Monoxide alarms are now required in properties from October 1st 2015 and Legionella assessments at £100+ per year are becoming commonplace. More regulation will push costs for landlords higher.
This is all set against a backdrop of young professionals choosing to rent rather than buy and because of the rising house prices, many families priced out of the market to purchase. It means the rental market remains in demand and will only increase as landlords exit the space ahead of the tax changes coming in and that reduces supply of homes.
The result is that the market looks ripe for increased rental prices. Less supply of property matched to property purchase prices rising faster than wage inflation means more and more will be required to rent whether they want to or not. Price rises in rentals will happen but most likely be in line with increased costs and what the local market can sustain. That means significant forced rises due to costs and around 10% per year in the most popular places.
The whole market is skewed by the rising rents and house prices in London but with the exception of the North East which is lagging the rest of the UK, the outlook for the landlord remains rosy.
But serious landlords are always looking to provide the best property at the lowest price to maximise profits. That means reducing costs and that will become all the more important as new tax laws turn mortgage interest from a cost into a profit. An absolute must for landlords is buildings and or contents insurance and that is one of the areas The Property Insurer can really help save money and benefit landlords.
The Property Insurer uses a panel of three of the best landlord insurance specialists in the UK and allows landlords to compare prices and policies quickly and easily. One of the brokers offers a price guarantee and is recognised as one of the lowest price providers in the UK. The competition for your policy is fierce and you will save money.
Get a landlord insurance quote from The Property Insurer today and see how much you can save – make your property portfolio as profitable as possible ahead of increased regulation and costs.