Don’t blame the landlord

A tax expert and former landlord insurance policy holder says landlords should not be criticised for taking a commercial approach to their business just because tenants are finding their rents going up.

Mike Warburton has seen both sides of the landlord “coin” and says while there is little doubt that property owners with tenants are experiencing a boom period at the moment, it is not always like that, explaining “It’s not much fun being called on a Saturday evening by your tenant to be told that the washing machine has stopped working or that they have managed to lock themselves out.”

He believes that the lack of funding available for young people hoping to get a mortgage has forced many people into becoming tenants against their will but insists that is not the fault of landlords. It is a misconception to assume most landlords are professional property owners with dozens of houses in their portfolio. The majority of landlords own just 1 or 2 properties and it is more and more tending to be people who can find no decent place for their savings or pension plans because of the low interest rates offered by banks and the uncertainty of stock markets across the world.

He explained: “These small landlords are just looking for a decent return on their money and their capital protected from inflation. The property market is a good example of supply and demand at work. Demand is increasing and not enough houses are being built. In these circumstances, it shouldn’t surprise any of us that rents are going up. I realise that some landlords have not looked after their properties as they should have done and may have given the industry a bad name. The majority, however, are diligent and have taken on board the various regulatory changes with stoicism.”

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