Guides How To Be a Landlord: Things You Need To Know

There are numerous property investment strategies that you can make in the UK. One of the most common is the purchase and rental of a property, but what does the future look like for landlords in the UK?

Fluctuations in the Rental Market

The current state of the market is going to affect what the future looks like for UK landlords in more ways than one. Some of the things that you need to keep track of as a landlord include supply and demand trends, rental prices and key areas of growth. By focusing on these trends, you can be sure to capitalise on any positive movements.

UK Laws and Changing Regulations

The laws for UK Landlords are continually changing. One of the more recent law changes would be the Tenant Fees Act of 2019. This affected both the rights and the responsibilities of landlords and tenants, and therefore, impacted the rental market. Plus, with new changes such as the Renters Reform Bill and the incoming EPC law, which sees properties needing a rating between A – E to avoid sufficient works needed, these will continue to impact the rental market now and in the future.

The Residual Impact of Covid-19

The pandemic has had a huge and profound impact on the rental market. Covid-19 has resulted in an increased demand for rental properties, and with this demand has come some significant fluctuations. The long-term impact of the pandemic is going to continue to shape the market as the years go by.

Growth of Technology

The growth of technology is going to change the way that rental properties are both marketed and managed. Online rental platforms and virtual viewings are on the rise and this is going to have an impact on traditional landlords. Tenants are going to demand a higher level of service and those who do not manage to stay ahead of the trends, will certainly end up missing out.

Sustainability Conditions

Environmental and sustainability conditions are also going to have a major impact. The UK has a plan to become carbon-neutral by the year 2050 and this is going to influence what people are looking for when it comes to rental properties. Tenants are going to be looking for properties that are greener, or more energy-efficient overall. If you do not provide this or if you have dated heating systems in your properties, then this could result in a higher tenant turnover.

Institutional Investment

The level of institutional investment in the UK market is going to play a role when it comes to the future of the rental sector. Increased competition amongst traditional landlords will affect prices as well as tenant demand. As more people venture into the rental sector, prices could lower, as investors try and compete with one another.

The Economic Climate

The economic climate, which includes inflation and interest rates, is also going to greatly impact the rental market. The changes are going to affect the demand for rental prices as well as for properties themselves. This has an impact on tenants as well as landlords. The more a landlord has to pay for a property, the higher rent they have to charge to recoup those costs, resulting in the tenant paying more. The ripple effects of economic changes are often felt far and wide.

The UK Government Role

The UK government has a very large role to play when it comes to regulating the rental market. Future legislations greatly impact the sector and there are also potential changes to tax laws. This can impact landlords in more ways than one, and it can also result in wide fluctuations across the rental market.

Property Maintenance

Property maintenance and renovations are going to carry on playing a critical role for a lot of landlords. Adapting properties so that they meet tenant demand is going to be a very important factor for retention. Tenants who do not feel as though their needs are being met will go on to seek out other properties, so landlords have to ensure that they are continually providing a living space that is in line with the current standard. If you can make sure that you are aware of these factors and the impact that they have on the rental market, you can then make an informed decision regarding your current choices. You can also navigate the market successfully as well as increasing your profit margin. If you want to make sure that you are always making a profit then providing tenants with the living space they are looking for, remaining competitive with pricing and taking into account any economic conditions is crucial, because this can all impact your investment. This is especially the case if you have multiple investments to keep track of, so be mindful of that.

What does the future look like for UK landlords? The answer is ever changing, but it’s with a professional property consultant on hand to help, you can always be prepared. If you need advice on any of the above, our Property Consultancy service can help guide you through this. Alternatively, you can find more information in one of our Property books.

Don’t hesitate to get in touch if you have any questions and one of our experts will be happy to help.