New landlord survey reflects a sense of positivity and
optimism across the industry…
Yesterday the National Landlords Association (NLA) published their Landlord Optimism Index, which revealed that landlords are increasingly optimistic about the future of the lettings industry.
National lettings specialists Belvoir, who have more than 140 offices across the UK, say that the survey accurately reflects the trends they are seeing from their own landlords, but urges investors to seek expert specialist advice before committing to the purchase of a rental property.
“The National Landlords Association (NLA) Landlord Optimism Index reflects the general feeling of our landlords, many of whom are planning to expand their portfolios in the coming months and years,” says MD of Belvoir Lettings, Dorian Gonsalves.
“We have seen rents increasing by 3 to 5 % a year, a healthy level of increase which is in line with inflation. The outlook is very good and there is a sense of positivity and optimism across the industry.
“However, I would urge landlords to think carefully before investing with investment clubs and below-market-value operators, who are once again becoming very active in buy-to-let by appealing to landlords who think they can make a quick profit because they read headlines such as ‘buy-to-let booming’. Investment landlords need to be sensible and realistic and beware of promises that simply cannot be achieved.
“My advice to landlords looking to invest is that they should seek free independent advice from someone who is not looking to sell them a property. Belvoir, for example, have more than 140 buy-to-let experts throughout the UK who can give free advice and can help landlords look at the whole of the market.
“Landlords also need to be clear about their business plan going forward and should take advice on property types, tenant demand and location, as well as doing detailed research to ensure they buy the right property and not just one that seems cheap at the time. If a property is extremely cheap, there’s probably a reason for it.
“As some areas of the country are performing better than others, landlords should research different areas, too, with the help of a national network, such as Belvoir. Plus, they should be aware of the pitfalls so they are able to plan for every contingency – you wouldn’t open a business and start trading in any sector without being aware of things that could go wrong.
“Also landlords should factor in the cost of using an agent who has client money protection – and remember all fees are tax deductable. Getting the right property management agent can be the difference between having a successful problem-free rented property and a costly and troublesome experience.”
