Half of landlords are positive about the future but new regulations and tax changes are causing concern, according to new research from AXA UK.
A survey of 1,000 UK landlords, which looked at the opportunities and challenges they face following the pandemic, revealed 48 per cent perceive new legislation and regulation to be the biggest challenge, closely followed by increased maintenance costs on 42 per cent.
Of this legislation, electrical safety measure checks and tax changes present the biggest concerns. Although some of this legislation aims to provide increased safety and security for residents, it will potentially result in additional administration and cost for landlords, who may have limited support to implement the changes.
One in seven landlords are considering reducing their portfolio, with younger landlords most likely to consider this – up to one in four.
Just over a third say they may consider discontinuing their rental portfolio altogether in the coming years, with 30 per cent citing the pressure and cost of too many regulations as a reason.
However, despite a tricky year, two thirds of landlords still think being a landlord is profitable, and over half enjoy it.
Views of the future are bright, with 49 per cent feeling positive and 31 per cent feeling neutral, leaving only 20 per cent negative.
For over two fifths, a steady income and having a long-term investment for the future are considered the top benefits of being a landlord. In particular, female landlords are more likely to view their rental portfolio as a long-term investment (49 per cent against 40 per cent of men) while those aged 55 and over are more interested in the steady income than younger landlords.
“These findings show the particular challenges being faced by landlords currently but also the positive outlook the majority have to what they do. It’s encouraging to learn that despite these challenges, they are still reaping the rewards of a profitable business and will continue to grow their portfolios” explains Deepak Soni of AXA UK.
