The Challenges Facing Landlords & Property Managers in London

… & how we can help

Once upon-a -time, being a landlord in the Public Rented Sector (PRS) was a plausible way to run a business that provided housing for tenants whilst ‘building’ a financial asset for the owner. It provided a vital solution in the housing sector (30% of housing in London is rented), and an equitable opportunity for the owner. All good. However over the past 5 years, i.e. particularly since the pandemic, the property rental market has been hit by some significant changes: stiff legislation, Fire & Safety regulations, Cladding remediation, tax changes and the Renter’s Rights Bill, to name just a few. It has felt like blow after blow.

ESSENTIAL MEASURES

Admittedly, some of the new requirements are thoroughly justified. The Grenfell tragedy was a wakeup call for all and one that needed to be dealt with absolutely. Most landlords (especially those supported by agencies), were able to rapidly set up measures to evaluate and manage the Fire & Safety requirements, and this hurdle was overcome. However, if it turned out you were the owner of a property with faulty cladding, the outlook was bleaker. Cladding remediation has been an ongoing headache for many and continues to be so. (MIH are supporting a number of landlords in their claims with successful outcomes.) Since then the demands on landlords have risen – and the challenges keep on coming.

HOW TO STAY ON TOP?

The rules can seem unnecessarily harsh, and now very much biased towards the tenant. With property value in the capital wavering currently, it can feel like rising costs, greater legal restrictions and increased maintenance costs have throttled all the original ‘opportunity’ and squeezed out any possibility of profit.

But, with some landlords opting to sell up, now is the time to hang in there. The government rules are fundamentally designed to weed out the unscrupulous landlords – those who manipulate tenants and demand high fees and impossible contracts for poor quality homes – so if you have scruples you’re already ahead.

LOOKING ON THE BRIGHT SIDE

There will always be a strong demand for rental property in the capital. The cost of purchase is prohibitive, so the rental market plays an important role be it for temporary, youth/student or simply affordable accommodation.

• The economy and interest rates continuously ebb and flow – it is cyclical. They are currently at their lowest ebb for some time, so it’s highly feasible that in time they will rise again.
• The big build buy-to-let corporate operators are targeting a specific market niche – not necessarily the one you’re operating in.
• Property is still a good long term financial investment if you structure things properly.
• Investing in maintenance will protect and preserve your asset, keep tenants happy and ensure that your property is saleable when the time comes. Factor it in.
• Having a professional property agency that knows all the rules is a great advantage and is proven to save money (and stress) in the longer term.

If you’re a landlord struggling with the outlook and are looking for support and guidance in managing your portfolio equitably, get in touch.

CALL 020 3637 7968 OR EMAIL info@mihproperty.co.uk