Not since 2007 have British residential landlords been as happy as they are now, and that is not just because cheap landlord insurance is more widely available than ever before. According to new research by the the NLA (National Landlord association). surveys show that 57% of landlords who have invested in residential property have said that their prospects look either good or very good for the next quarter of the year. The optimism for landlords is mainly due to an increase in the value of their properties and the demand for rental is still strong.
A spokesman for the National Landlords Association observed, “Landlords have faced considerable challenges recently. Everything from longer void periods to an increase in rental arrears have taken their toll on landlords’ optimism. However, it is good to see we may well have turned a corner”.” With rent arrears and void periods both stabilising, 2010 could prove to be a real catalyst for landlords who are looking to expand their portfolios.”
However, Mr Norris also said “it remains to be seen if a rise in capital gains tax, which could be announced in the government’s June 22nd Budget, will “see off” landlord confidence in the coming months.”
Landlords in the buy to let market will have even more reason to smile after Grant Shapps the housing minister recently announced the end of Hip’s (Home Information Packs) Nearly 3million people were forced to pay for a Hip but now it has been scrapped it should make moving a little bit cheaper. A Hip costs approximately £350 and an EPC another £100. What many disliked was that a Hip was only valid for six months at a time meaning if the property was still on the market despite having viewings, after 6 months the prospective vendor would need another Hip. It is not all good news for landlords as other government policies, and in particular the possible capital gains tax plans, may have the smiles turning into frowns.