Don’t Quit As A Landlord

Don't Quit As A Landlord

Don’t Quit As A Landlord The Market Needs You

By Nicola Wood Letting Cloud

Don’t quit as a landlord! Being a landlord has always been knowing as a worthwhile and lucrative career, but in recent times more and more landlords appear to be selling up and leaving the rental market. The reasons for this are varied and this article will take a look at the reasons why, but our main focus is on why landlords shouldn’t sell up and leave the market.

Don’t Quit As A Landlord!

3 Reasons For Selling Up

According to a study carried out by the London School of Economics in November 2021 three reasons why landlords are quitting the rental market is due to the tax liabilities of renting properties such as:

  • Liabilities like capital gains tax staying at 28% and adding a 3% premium on stamp duty for properties which are not the main residence have added to the tax burden shouldered by landlords.
  • Added to this is the increasing costs associated with owning a rental property. From carry out energy efficiency upgrades, to the cost of expert property inspections, increases in costs for court action, paying for EPC certificates and landlord licences, the cost of being a landlord appears to only be increasing.
  • The third reason given for landlords exiting the rental market is the increasing regulation that is being brought in. Everything from deposit schemes, safety checks, eviction notices and risk assessments. The regulatory burden on even an experienced landlord is not insignificant and it can take a lot of time and effort to understand and comply with them all.

Given this increasing burden, it is understandable that landlords are looking to exit the sector, but it isn’t all bad and there are many very compelling reasons to stay.

Why Landlords Should Stay and Don’t Quit As A Landlord?

Currently the rental market is booming at the moment with more people looking for rental properties than ever before, and rents increasing as a consequence of there being more demand than supply. With other landlords quitting the sector and selling up, the demand will continue to outstrip supply, keeping rental incomes profitable.  In addition to this void periods are the shortest they have been for 5 years (averaging around 6 days). The important thing to take from this is that rental demand is high, rents are being sustained at good levels and void periods are low which means that landlords will be more assured of constant income. Added to this, property prices in general are also booming meaning that the investment in property is still very lucrative in the long term.

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