A lettings agency chief is disputing the conventional wisdom that there has been a substantial exodus of landlords because of the rising costs of buy to let and growing volumes of red tape.
Allison Thompson, the national lettings managing director of the Leaders Romans Group, says: “While it’s true that some have decided to stop being landlords, the reality is that a lot of rental properties come to the sales market simply because landlords have reached the end of their planned investment journey.
“They’re around retirement age, have made good money from property over the years and now want to realise their equity gains. Many of these are snapped up by other landlords – often professionals who are continuing to grow their portfolios – and the proportion of households renting in the private rental sector has been holding steady for the last decade.”
Thompson – who in the past has expressed support for various Conservative and Labour reforms of the sector – cites Rightmove data showing that across Britain some 18% of properties now for sale were previously on the rental market, compared with 8% in 2010.
She returns to her support for reforms when she says in a new statement released this week: “Although much has been made in the media of the ‘danger’ to landlords of Section 21 being scrapped and other planned rental reform changes making it more complex and more expensive to be in the buy-to-let business, good landlords have little to fear, especially if they are working with a qualified agent.
“In fact, in most instances, tenants give notice, not the other way around. A more regulated sector with higher standards is a good thing for everyone, and with demand for rental accommodation only likely to keep increasing while new social housing is still well behind building targets, we certainly need private landlords to keep investing.”
She insists that new landlords who conduct solid research into the local market, buy well and ensure the property is let and managed professionally, can still generate income in excess of the returns from other financial investments.
She adds: “Rents are currently rising at a rate over inflation, which should help make buy-to-let more financially viable, and prices are maintaining a steady upward trajectory, meaning your equity should increase over time as well. Of course, markets and trends naturally cycle and fluctuate, so to see the best returns, you need to be prepared to invest for the medium to long term – around 15 years or more.”
This article is taken from Landlord Today