According to online letting agent Upad.co.uk, many of the changes set to be introduced to buy-to-let in 2018 will be hugely beneficial in the long term and that 2018 has the potential to be a great year for landlords.
Despite previous years being marked by declarations that “the death of buy-to-let” was upon the industry, landlords have continued to enjoy healthy rental yields while performing what is an essential service to millions of tenants across the UK.
In a continuation of this trend, Upad feels that:
Tenancies standardised to 12 months rather than six months will be good news for landlords as they can avoid frequent void periods and the hassle of maintaining a property between tenancies
Universal credit reforms will help landlords let to tenants receiving this benefit, who tend to stay in properties for longer periods
Alternative instalment-based tenancy deposit schemes will mean landlords can appeal to tenants who may not be able to afford a significant lump sum deposit
Changes to tenant referencing will help landlords let to reliable rent payers, irrespective of their overall financial circumstances
Speaking recently following the announcement of a consultation to look at longer standard tenancies in the 2017 Autumn Budget, Upad CEO James Davis, himself a portfolio landlord, said:
“Whilst longer tenancies aren’t exactly new, the fact that 12 months will now be standard should be welcomed all round. From the landlord’s perspective, it’s better to have the security of knowing your property is let, albeit without a regular % increase in the rent, than it is to enjoy 5% income rises but with the risk of costly void periods. It’s all about looking at the bigger picture and in this instance, that your profit and loss account.
I’ve personally agreed many three or even five-year tenancies and have found that they offer me far greater security and peace of mind, compared to regular six monthly turnovers of tenants. Then, of course, there’s the simple ‘hassle factor’ of regular changes in occupants: cleaning, repairs, making time for viewings and the administration that goes with all of that. Personally, I’d rather get on with living life!”
Upad has highlighted these factors in an infographic looking ahead to 2018 at https://www.upad.co.uk/hub/essential-tips/managing-your-property/five-things-landlords-look-forward-2018.