The saying “change is the only constant in life” is certainly true for the Private Rented Sector.
With what feels like endless change over the past few years, the private rented sector is almost unrecognisable since the introduction of the Housing Act in 1988, 30 years ago.
We’ve had increasing amounts of legislation to encourage energy efficiency, to act as border control to reduce illegal immigration, and to increase the safety of tenants.
Meanwhile, a number of tax changes have also been brought in that appear to have led some to suggest landlords will be deterred from growing their portfolio, or indeed may even sell.
However, there remains a number of really important facts that counter these concerns.
- Firstly, there are estimates that as many as 22% of households in the UK are privately rented and projections are that this could increase to 25% by 2025.
- Those who choose to become a tenant enjoy increased flexibility and mobility and have far lower up-front costs compared to those buying a property. Those who value their personal mobility, and are looking for relatively short-term accommodation will often find that renting a home will be more cost beneficial than paying the Stamp Duty liability on a purchase.
- Finally, landlords understand that well maintained, quality homes will attract discerning tenants, and command fair rents. Good-quality properties often ensure the tenant takes pride in their home and will often be likely to stay for longer.
Whatever future changes our sector may need to prepare for, the three most important facts are that many tenants are happy with their home, the market continues to grow and the changes we’re facing are intended to improve the experiences of the sector for everyone.
The haart Investor Services Team are here to you obtain more information about how to maximise your investments in the current property market for more information contact Kate Hurles on 079 6012 0267 or email Investor.firstname.lastname@example.org