Good year for landlords – 2018?

According to reports, 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 momentous 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.

Some plus points:

1) 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.

2) Universal credit reforms will help landlords let to tenants receiving this benefit, who tend to stay in properties for longer periods.

3) 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.

4) Changes to tenant referencing will help landlords let to reliable rent payers, irrespective of their overall financial circumstances.

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.

Mortgage rates have increased slightly since the new base rate was announced but not as much as some predicted. Smart landlords are reviewing their mortgage deals with a view to re-mortgaging to a fixed deal to secure longer-term profitability.

Can we assist?

If you would like to review your mortgage/s please do make contact and one of our advisers will be happy to help.