Property Reporter



'Perfect Storm' of legislation enforcement causing landlords to be wary

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'Perfect Storm' of legislation enforcement causing landlords to be wary

Research by The House Crowd reveals that two thirds (66%) of UK property investors predict more turbulence from this month's Budget announcement - with a fifth already planning to pull out of buy to let this year.

Investors feel increasingly under attack, with legislation such as the EU Mortgage Credit Directive and increase in stamp duty on buy to let properties, coming into force this March and April respectively. Over 70% of those surveyed believe that these changes will have a negative impact on their investments, with smaller investors set to be hit hardest by ever tightening profit margins. 43% feel that the government is trying to squeeze small investors out of the market altogether.

Over half (54%) of landlords indicated that they do, however, support tighter regulation from the Bank of England to clamp down on rogue landlords.

Despite sentiment towards traditional buy to let turning sour, it appears that investors still view bricks and mortar as the best way to secure their futures. The UK-wide survey revealed:

    A third (33%) still prefer to invest their money in property as it is a tangible asset
    A third (38%) think landlords need to be looking at smarter ways to invest
    Over half (57%) think buy to let will remain a strong option as there is a continued housing shortage in the UK


Frazer Fearnhead, Founder and CEO of The House Crowd, said: “With house prices continuing to rise and the property market outperforming the FTSE, bricks and mortar presents a strong investment option.

Despite this, new legislation is making buy to let ever less accessible for the small landlords who want to invest in something sensible and tangible to secure their futures.

As many of the landlords surveyed identified - it's time for beleaguered investors to be looking at their options. February was our strongest month yet, as investors turn to property crowdfunding to achieve the returns that property offers minus the stress and risk of being a landlord.

Times are hard for the UK's small property investors – but it's time to adapt, not despair.”

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Latest Comments

HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

Tenants disappearing into the night is common from shared houses ( licensed and un-licensed HMO's) often when they owe considerable rent- they remove all their possessions, leave key in room and tell other...

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CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

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Johna
Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

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Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

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richardrawlings
richardrawlings 18 May 2016

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

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Agent_PeeBee
Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

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richardrawlings
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

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Simon Oliver
Simon Oliver 16 May 2016

The best solution is to buy a property that has built-in income generating potential: a nice house with a couple of gites in the grounds is a good start. In France, the rune of thumb is that one 2-bedroomed...

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WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

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warren
warren 03 May 2016

It's enough to make me weep into my Pimm's :(

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james anderson
james anderson 03 May 2016

The sad demise of the croquet lawn...

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CommercialTrust
CommercialTrust 11 Apr 2016

".. the stricter lending criteria will reduce the amount of buy-to-let lending by 10% to 20% in three years’ time." The PRA was actually referring to cumulative approvals here. What they believe is that...

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