New research shows nearly 30% of PRS landlords so stressed they could call it quits within a year rather than struggle with new and pending legislation.
The research, carried out on behalf Just Landlords, found almost a third (31%) of respondents saying they have more worries than they did 12 months ago, with 28% claiming that owning a rental property is “very stressful”.
Emily Morley from Just Landlords says the evidence suggested a need for increased use of accredited letting agents to manage PRS properties – urging landlords to look to the future and “have faith” that the market will not only stabilise but strengthen.
“The private rental sector forms the bedrock of society and there will be ramifications across the board should landlords respond to their worries by exiting en masse – 2020 will be a revealing year,” she said.
Concern at Brexit adversely affecting the market was also cited in the survey; 23% of respondents believe it will become harder to find new tenants, while a quarter (25%) say rental properties will be harder to come by.
But almost a quarter (24%) of those surveyed believe new eco-standards will have the greatest impact in 2020.
Another significant change relates to the phasing out of deductible mortgage interest payments.
Until 2017 mortgage interest payments were tax deductible but from April this year that will no longer be the case.
Instead landlords will receive a tax credit calculated at 20% of their mortgage interest, reducing their tax liability by the same percentage.
Just Landlords said all these factors contributed to more than a quarter (26%) of respondents saying that 2020 will be more expensive for landlords.
“Landlords must be aware of all these changes, as well as financially capable of accounting for them,” said Morley.
“Investing in and letting a property has never been a straightforward process, but we’re seeing an increasing amount of additions and changes to legislation.
“It’s great that the Government is acknowledging issues within the private rental sector and making attempts to improve housing for tenants, but there needs to be a balance that allows landlords to remain confident in the market,” she said.