It’s been an extremely busy couple of weeks when it comes to landlords and the private rented sector, and here at PropertyQuoteDirect we believe that in order to be a great landlord you need to stay well informed! However, we also know that many of you simply don’t have the time to trawl through the internet all day, so here is our pick of the most important changes in the private rented sector that every landlord should know.
UK Economy Increases
This news story only broke yesterday, however it’s been something everyone has been talking about for a number of months now. There have been fears that the UK economy could shrink again this month which would lead to the dreaded ‘triple-dip’ recession, however we can all breathe a sigh of relief due to the fact that the economy actually grew by 0.3%. Even though this is a small figure, and we are still a long way away from the economy being back to a pre-recession state, we do seem to be seeing more stability within the UK. This is great news for landlords as it could mean that banks will become happier to offer mortgages and that your landlord insurance quotes could come down due to less risk in the market.
Funding for Lending scheme helps PRS
The government launched their funding for lending scheme months ago in order to incentivise banks to lend money to small and medium sized businesses even though the markets are currently risky. So far there have been criticisms over the scheme due to the fact that only a few businesses have taken part in the scheme, however now it has been announced that George Osborne has decided that small and medium businesses will be able to lend this money to property investors. This will undoubtedly help with the housing crisis, and also appease those who complained that in this year’s Budget Mr Osborne focussed too much on helping people buy homes and not enough on the private rented sector.
Property Prices Increase
One of the most important news stories we have heard recently is that property prices are set to increase by an average of 4.5 per cent over the next few months, and that optimism in the property market is at its highest for years. Many are even saying that 2013 could be the best year for the property market since before the recession hit, meaning that as a landlord you could find a massive increase in the equity of your properties. This could also lead to many more landlords investing in new properties, which will boost not only the private rented sector but also the UK economy in general.
The past few weeks have provided some well-needed good news for landlords and the UK public in general. If all goes to planned, 2013 could be a great year for the private sector industry, so keep an eye out for more updates!