It would be fair to say that there are many different opinions about the rental market and the merits of being a landlord. If you were to discuss the market with an existing landlord, you would learn that they face many problems and challenges in operating their business. However, to someone looking into the industry from the outside, rising rental fees and a prominent level of demand for rental property makes being a landlord look attractive. New landlords are likely to find the market more appealing than existing landlords and there has been an increase in people looking to become landlords.
If you are considering becoming a landlord in Barnstaple, contact Bond Oxborough Philips as we will be more than happy to assist you with the process.
More people are expressing an interest in becoming a landlord
A recent study undertaken by Sainsbury’s Banking indicates that there is a strong level of interest in new people entering the buy to let market. The study suggests that 9% of adults who responded are considering obtaining a buy to let mortgage in what is left in 2018. While it is highly unlikely that all these people will follow through with this initial interest, even a minor proportion of people entering the buy to let market would increase the supply of rental homes.
It is positive to see that the people who said they would look to obtain a buy to let mortgage can offer explanations as to why they want to enter the market. 35% of respondents who said they would like to become a landlord cited changes in their own financial and personal circumstances as being the driving factor behind their decision.
Accidental landlords are on the rise in the UK
Of the respondents who said they want to become a landlord, 29% said the opportunities provided by current market conditions were too appealing to ignore. There is also the fact that there is a growing number of people becoming “accidental landlords”. People who have inherited a home that they have no use for but are struggling to sell or people who can’t sell their own home have turned to the rental market to generate income and create more time for themselves.
All these people have genuine reasons to enter the rental market and when they look at rental fees and high demand, you cannot blame people for evaluating the opportunity.
Some of the issues that existing landlords have had to contend with include:
- An increasing array of regulatory changes
- The loss of tax relief on mortgage payments
- Additional stamp duty charges when buying additional property
- More fees and higher fees to contend with
However, new landlords can create their own business model knowing the parameters of the rental sector as opposed to having to adapt an existing model to operate in a much-changed landscape. If you’re looking to become a landlord in Barnstaple, contact Bond Oxborough Philips and we’ll be more than happy to assist you.