At MGY we’ve been in the property industry for many years and one thing we know for sure is that the doomsday predictions regarding the buy-to-let trend are, in our professional opinion, not entirely true.
Yes, the increased legislation and regulatory changes (with their desk loads of paperwork and red tape) have made being a professional residential Landlord so much more demanding, that it will inevitably result in some landlords deciding that it is easier to sell up.
And, yes spiralling financial costs, including increased tax, diminishing tax relief and stamp duty surcharges will send a good number of Landlords running for the verdant green Welsh hills.
But while the Lettings market undergoes these painful changes, there are still three compelling reasons to ride the storm and wait until the dust settles.
Firstly, there is still a viable, sustainable market with steadily increasing demand for rental properties in the UK – especially in Wales. With a constant stream of tenants (many of whom are new to renting) entering the market month on month, it really doesn’t make sound business sense to turn away from potential business in a rising market, does it?
Secondly, the numbers of newly available properties on the market have, to a degree, resulted in a ‘buyers’ choice’ of rich pickings for landlords who operate as serious businesses and who are in professional property lettings for the long haul.
Thirdly, the legislative changes to the rental market are long overdue, they will do what they are intended to do – and that is to drive out rogue Landlords or those who are only interested in making easy money and who house tenants in neglected or unsafe properties, putting them at risk and bringing the industry into disrepute.
Buy-to-let mortgage offerings remain competitive and arranging to remortgage at a better rate is one valid route for practical Landlords to offset their costs. What’s more if the residential lettings market were dwindling – would the likes of Sainsbury’s Bank and the Mortgage Lender be entering the buy-to-let market as recently reported by London & Country in the nationwide press?
So, if the reports are true and ‘19% of landlords plan to sell up’ in the coming year, to us that can only mean one thing: a market that’s ripe with opportunity for those Landlords who can see the rewards beyond the current glut of pessimistic predictions and who are interested in continuing to run the kind of professional operations Cardiff’s tenants deserve.