With White Paper Policies becoming legislation what does 2018 have in store for landlords?
- 2nd February 2018
- Landlord Property News
From the viewpoint of the fundamentals of supply and demand, buy-to-let remains a robust market that outperforms many investment alternatives over the long-term
Landlords have begun to feel the impact of a plethora of legislation dating back but now implemented , so let’s hope that our friends in Westminster take breath this year and focus more on the positive benefits the private rented sector brings to the housing market.
There are some straws in the wind – with recognition that plenty of young professionals and post graduate students, often referred to as generation rent, prefer the freedom that renting accommodation can bring, as it offers flexibility in the work place through labour mobility which in itself stimulates economic growth* suggesting that home ownership alone is no solution to the housing problem.
With changes to tax relief and new regulations, landlords should take note of what new developments in 2018 may mean for them.
For example, those with four or more properties will have more compliance obligations, such as landlord licensing, and it would be sensible for them to review whether they are managing their property affairs in the most efficient way.
Ultimately, time is money and some do-it-yourself landlords might find it preferable to get a respected and trusted agency to ensure that everything is in order and that they are not exposed to possible fines for non-compliance.
Overall, the long-term picture for the buy-to-let market remains strong. Indeed, our latest applicant statistics show that the number of new letting applicant registrations has jumped from 4,300 in January 2017 to 5,300 in January 2018 representing an increase of 23%, thereby reinforcing the continued strength of the London economy as a whole and the reputation of its internationally renowned universities.
Stephen Ludlow, Chairman of ludlowthompson, adds: “From the investment viewpoint the fundamentals of supply and demand mean that buy-to-let, particularly in London, remains a robust market and will almost certainly still perform better than most other investments over the medium to long term. And the Carillion debacle reminds us just how risky and volatile other investments, like equities and infrastructure funds, can be."
"Buy-to-let property still provides resilience over the long-term compared to the volatility of other assets. Indeed, data from MSCI shows that over a 16 year period*. the tolerance of residential investment property bettered not only the other categories of property but also equities and bonds.**”
* OECD Economic Policy Reforms – Going for Growth Interim Report 2014
** Source: MSCI Annual Residential Property Index
From the investment viewpoint the fundamentals of supply and demand mean that buy-to-let, particularly in London, remains a robust market and will almost certainly still perform better than most other investments over the medium to long term
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