Being a landlord is not plain sailing, says tax expert
A recently published report is good news for landlords but less so for tenants.
The difficulty in obtaining mortgages has made it difficult for younger people to buy their homes. Together with the normal demands for rental property with people moving jobs, this has pushed up rents by about 3.2 per cent in the last year. Inevitably, some see this as landlords cashing in on the plight of the young and I certainly have sympathy for those forced into renting who would have preferred to buy their own homes.
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Being a landlord is not plain sailing, says tax advisor Mike Warburton
However, interest rates being offered by banks and building societies are typically below the rate of inflation and with the stock market flat and uncertain, many people who are not necessarily wealthy have decided to invest in property as a way of securing their future, either as a supplement or instead of a pension fund.
These small landlords are just looking for a decent return on their money and their capital protected from inflation.
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The property market is a good example of supply and demand at work. Demand is increasing and not enough houses are being built.
In these circumstances, it shouldn't surprise any of us that rents are going up.
I realise that some landlords have not looked after their properties as they should have done and may have given the industry a bad name. The majority, however, are diligent and have taken on board the various regulatory changes with stoicism.
I know from personal experience that being a landlord is not plain sailing.
It's not much fun being called on a Saturday evening by your tenant to be told that the washing machine has stopped working or that they have managed to lock themselves out.
In addition, not all tenants leave the property in a pristine condition at the end of their tenancy.
Landlords provide an important service.
They should obviously take their responsibilities seriously, but they should not be criticised for taking a commercial approach.
â To see properties for let in Gloucestershire, turn to page 21.
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