By Neil Driver, Partner at Davis Grant
The last few years have been challenging for many landlords and investors given the legislative and economic difficulties that have emerged in the last decade.
Despite this, a new study has found that landlords remain determined to retain their investments in rental properties.
According to buy-to-let property investment specialist, Sequre Property Investment,10 per cent of landlords have sold part of their portfolio in the last five years, while just 19 per cent stated they were thinking of selling up in the next five years.
Of those choosing to sell up the prime reasons for doing so were either dealing with tenant issues or choosing to retire.
Investing in property remains an extremely popular option for many, often offering strong returns than more traditional savings accounts or investments.
While they also carry more risk and are increasingly curtailed by legislation and new tax policies, most landlords remain confident with their investment and have no plans to exit the buy-to-let sector – if this research is to be believed.
However, new challenges lay on the horizon, not least the changing expectations of tenants – many of whom are demanding longer more secure tenancies.
A new survey of over 1,100 tenants commissioned by Ascend Properties has highlighted this trend, finding that 93 per cent of those asked think that tenancies longer than 12 months should be more widely available within the UK rental market.
Some 81 per cent also stated that the pandemic and the turbulent rental landscape that emerged, as a result, have made them more likely to rent a property for longer than 12 months.
The driving factor behind tenant demand for longer-term tenancy agreements is the security they provide, with many having no choice but to move on at the end of the year should their landlord choose not to renew.
However, providing longer tenancies is not without its risks, not least the challenges of raising rent for existing tenants and the difficulties that longer tenancies place on landlords who need to sell a property urgently.
With so much flux in the property sector at the moment and with future fears of tax rises and further landlord legislation, it is important that property investors have an adviser they can trust. To find out how our experienced team can assist you, please contact us.