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Many BTL landlords worried their properties won't ‘cover their own costs’

Bricks and mortar have provided stellar returns for many people over the past couple of decades, prompting many to rely on property, whether a main residence or buy-to-let, as their pension.

Aside from creating a safe and secure way for your money to grow and for your wealth to increase, property also often appeals because people like the physical sense of ownership, rather than the notional ownership of an investment shown on a piece of paper or computer screen.

But relying on property for your pension could leave you in a sticky situation, according to Alexandra Morris, managing director of MakeUrMove. 


It is estimated that almost a million private landlords face a pension black hole after new laws and regulations mean the income from their properties will not sustain them in retirement.

Research shows that three quarters of those landlords will consider selling their properties if they start to make too small a margin, or fall into the red due to additional costs.

With more buy-to-let landlords looking to offload their properties to avoid recent tax and regulation changes, there is some concern that some landlords may struggle to sell their properties - at their desired price - amid a surge in supply of properties on the housing market in some parts of the country. 

The problem disproportionally affects older landlords, who have little time to make changes before they need to rely on their properties for a retirement income, with those over 55 most concerned about making too small a profit on their properties.

Morris said: “Smaller, casual landlords have been impacted by rising costs of managing their properties, with 38% citing the high cost of repairs as one of their biggest concerns.

“The problem impacts landlords with a buy-to-let mortgage the most severely, as these additional overheads, combined with recent changes to the private rental sector, mean smaller landlords hoping for a steady income in retirement are now worrying that their properties won’t even cover their own costs.”

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    I know my costs will not be covered and even if they were falling property prices also come into play. Yes I know the values will go up again with inflation but I have just reached my four score and ten years so I want my value now. First property already sold.

    As the flats become empty they are going on the market. Long term tenants need not worry, they are worth gold dust to a landlord.


    at four score and ten you well deserve to be taking a step back, good properties with good long term tenants will be worth strong money to younger landlords with cash to invest.

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    what this boils down to is 1) the landlord that has borrowed too much, and 2) the arm chair landlord that sits back and expects the money to roll in without doing anything him / her self, why pay someone to clean up, paint and decorate, or do the garden in between lets, roll up your sleeves and get your hands dirty, you might just enjoy it and save a lot of cash into the bargain .

    • 16 July 2018 18:01 PM

    Andrew, if you genuinely believe what you just wrote then you my friend are a class A bloody idiot. Apologies for language but there really is no other way of saying it.

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    • 16 July 2018 10:25 AM

    Thats very helpful Andrew, why didn't we think of that, whilst were swanning about raking it in.
    I suppose you think the draconian legislation, imposed costs and Section 24 are all a good thing, depleting landlords of funds need for maintenance, boilers, repairs, insurance, licensing et al so they provide rented accommodation to a family at even higher prices to cover costs, most of which are imposed by council and government experts who accuse landlords of hiking rents!! Christ they're a bunch of geniuses! Where do people think the money to pay for these unnecessary imposed costs comes from? Your assumptions are just such, landlords are being squeezed out of the business of providing rented accommodation via a plethora of unnecessary and damaging measures supported by an ideologically driven hate campaign against the most successful collection of housing providers in the UK. Perhaps supporting, incentivising and teaming with the PRS would improve not only the provision but would certainly grow much needed rental stock as we the PRS are responsible for 83% of all new dwellings since 2004. Why would you damage such a valuable, creative self driven collective that should clearly be the major go-to group for growth in housing provision in the UK? Because they sit back and wait? I don't think so Andrew!


    Go Jamie GO!

    • 16 July 2018 18:02 PM

    Jamie the man is a fool. Don't bother.


    Interesting perspective, renters havent chosen the PRS through choice, the PRS has a steady stream of people who have often two choices, PRS or homeless, the PRS isnt liked by its customers because the PRS is more concerned with vilifying renters than actually making a product the customer actually wants.

    Its easier to tell your boss to stick his job but telling your landlord to get your house sorted ie repairs can mean the street or at the very least very inconvenient move .

    In reality a consumer can choose most products on ethical grounds reviews etc but not in the PRS, you wont know what your landlord or letting agent is like until you have moved in, bit late by then.

    The PRS isnt responsible for 83% of new dwellings they have hoovered up existing properties & often carved them up into HMO's the next boom industry no doubt

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    On the button Jamie I have over 40 properties starting with a 6 mth AST and then moving on to Statatory Periodic if I like the tenant and the tenant wants to stay. Only use an agent to Find then I carry out 2 or 3 month Inspections, it works and has worked for over 25 years. These Muppets and clue less few need to put their "hard" earned cash to use like the professional B2L person did and does

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    Andrew Townsend. What a stupid thing to say. Moron statement!


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