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

'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.”

Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 16 Jan 2017

HMOs do make great commercial sense, but do the area research first!

view article
OJoyce
OJoyce 30 Dec 2016

We can only hope this will bring the results we all want and strive for.

view article
Reality
Reality 21 Dec 2016

The changes to land tax were a shock to many when it was first announced by the Chancellor in 2015?s Autumn Statement. However, once the changes came into place and the full details were digested, it?s...

view article
akbar ali dayala
akbar ali dayala 20 Dec 2016

I am a landlord and director of an online letting agents at the moment we charge tenants minimal fees and landlord also meaning we can get best deals for tenants all around if the ban comes in it...

view article
milessgabriel
milessgabriel 05 Dec 2016

Useful article

view article
Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

view article
Tony Gimple
Tony Gimple 27 Nov 2016

It's not just the lack of estate agency advice that's costing landlords money; most are getting seriously bad advice from their accountants resulting in tax bills far higher than they need to be. Likewise,...

view article
Sally Walmsley
Sally Walmsley 18 Nov 2016

The RLA stands by its sell-off statistics. While we welcome the feedback from Mr Jagota and are delighted to hear how well things are going for landlords in the north east, we would like to make it clear...

view article
Sheryl87
Sheryl87 18 Nov 2016

The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming...

view article
Sheryl87
Sheryl87 18 Nov 2016

Renting out your house can be risky business. It's good to think about residential landlords insurance. Standard cover includes buildings cover and cover for loss of rent following damage to a property...

view article
AmberMorris
AmberMorris 09 Nov 2016

Fear of ghosts, really?? Ok, I get the fear of bats in the attic and mice and rats running under your nose - those are easy to deal with pest issues which are really unpleasant and can turn you off. But...

view article
AmberMorris
AmberMorris 08 Nov 2016

In my experience, It has always been a matter of discussion between the landlord and the tenant. There are cases when it's clear who's responsible for the pest control costs. I see a lot of people in forums...

view article

Related stories

More articles from Landlords

Specialist Lending Roadshow 2017

24th-27th January

4 days
7 specialists
4 locations
Free to attend

Click here to register now