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More rising costs for landlords, NLA warns

More rising costs for landlords, NLA warns

Private landlords have reported rises in costs, along with drops in yield, according to the National Landlords Association (NLA).

According to the group, income has fallen by 20% in the time between 2011 and January of 2020. They’ve announced that in that time period, property values have soared by 40% on average, but rent has only risen 14.5% in the same timeframe.

CEO of the NLA, Richard Lambert said: “Providing good quality rented homes is a costly business and getting more costly by the year.

“Although it is popular to paint private landlords as greedy parasites, only interested in pushing rents as high as they can go, the fact that rents continue to track below inflation, and far behind house price inflation, illustrates that this is far from the case.

“Being a landlord in the UK remains a worthwhile, and potentially profitable endeavour, but it is not a means of turning a quick profit.”

This news is coming at a time where landlord trust is arguably at an all-time-low. 

Landlords around the UK have recently warned the government of the potential rental market crash, caused by tax change plans announced by the government. These plans were described as “reckless” by the National Landlords Association (NLA). We have a story on this available here.

A survey made up of LandlordZone subscribers also revealed that landlords fear supply and demand after Brexit, giving them less tenant options, and longer vacant periods. You can read about this here.

 

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