Their findings suggest the number of new properties that came onto the sales market jumped by 11% across the UK as a result.
Those increasing ‘burdens’ include new tax rules coming in over the next 3 to 4 years and the announcement that all ‘self-managing landlords’ (i.e. landlords that don’t use a letting agent to look after their buy-to-let property) will soon need to register with a compulsory redress scheme to resolve tenant arguments and disputes.
Other recent legislations that have hit the private rented sector include the ‘Right to Rent’ regulation which came in to operation last year, whereby landlords have to certify their tenants have the legal right to live in the UK. This is, of course, one of the services included if landlords appoint a letting agent to manage their property. For ‘self-managed landlords’ who ignore these regulations, the consequences and fines can be severe.
So, what about those properties being released onto
the sales market?
Well, overall, Oakham doesn’t
match the quoted national trend, with the number of properties on the market
actually rising by 54% in the last year.
It was particularly interesting to see the number of flats increase by
an impressive 338%, yet the number of semi's on the market only rose by 12%.
The majority of that movement in the number of
properties and the types of properties on the market isn’t down to landlords
dumping their properties on the market. The whole property market has changed
in the last 12 months, with the majority of the change in the number and type
of properties for sale due to the ‘owner-occupier’ market, not landlords. Over the last 10 years, there has always been
a small number of Rutland landlords who have been releasing their monies from
their Oakham buy-to-let properties - as is the nature of all investments!
Nationally, the number of rental properties coming on to
the market to rent fell by 16% in Q4 2017 compared to Q4 2016, but that isn’t
because there are 16% less rental properties to rent – it’s because tenants are
staying in their rental properties longer meaning less are coming on the market
to be RE-LET.
Nevertheless, some landlords will want to release the equity held in
their buy-to-let properties in 2018. Landlords should seek advice from their
lettings agent first, as putting a rental property on the open market often unsettles
the tenants and may prompt them to hand in their notice days after you put it
on the market, and can create costly void periods.
However, some letting agents
who specialise in portfolio management have select lists of landlords that will
buy with sitting tenants in. If you have a property portfolio in the Stamford and Rutland area and are considering selling some or all of them - drop me a line as I might have a portfolio landlord for you (with the peace of mind that you won't have any rental voids).
David Crooke
Tel: 01572 725 825
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