Landlords are looking for solutions to an increasing level of legislation and regulations that are decimating their incomes and putting them in a worse position than the tenants they house. The Organisation for Economic Co-operation and Development reported that the UK has the highest property tax income as a percentage of overall tax revenue than any other country in the developed world for the second year running. Also, real estate adviser Altus Group reported that tax revenues from property have risen 47% since 2010 with landlords no doubt facing the brunt of this legislation.
I typed into ‘Google’ landlord issues UK and the first page had 16 entries, all of which were from the tenant’s perspective of how to deal with a rogue or unsympathetic landlord. There was nothing about what a landlord can do to protect his income or how to deal with nightmare tenants.
That sums up the current attitude to landlords from both the Government and the media. They feel that landlords are wealthy people who can afford to subsidise their tenants’ lifestyles. A raft of legislation brought in over recent years backs this up:
- Section 24 tax changes that seem to ignore the fact that this is a business.
- Changes to Section 21 and the further Covid amendment.
- Tougher attitude to Landlords looking to evict tenants.
- Reductions in tenant fees and deposits.
- Removal of tenant inventory fees upon exit.
- Inability to enforce clauses in tenant contracts due to these changes.
The Covid amendment is interesting as a Landlord cannot evict a tenant ‘unless there is a serious reason’ which is stipulated as 6 months’ rent arrears, with the other issues relating to tenant fraud. Given the backlog of cases with the courts currently this means it could be a year before you get access to your property. Add to that it will no doubt be in an awful state meaning that the reduced deposit will nowhere near cover the damage done. We cannot deny that there are appalling landlords in the UK that do not care about providing a quality home to their tenants but as is always the case they are a huge minority but, tar all good landlords with the ‘rogue’ brush.
Given the raft of anti-landlord legislation and the attitude of the courts, it is amazing that people still regard renting to a tenant as an investment, let alone a business.
Landlords are looking for solutions to the raft of issues highlighted here that are decimating their income and here at Sell My House Quickly Newark we can provide great advice on how to maximise the return on your property and use the legislation to your advantage.
So, if you are a landlord looking for a solution then contact us, and we will take you through your options.