It’s a tough time out there at the moment for landlord and investors. Constant change in letting legislation, favouring the tenant at end of tenancies in regards to damages and tax changes means landlords bottom line is continually being hit. The days of buy to let being an easy return seem long gone and there has been a mass influx of small and accidental landlords selling off properties because of this. However, selling off your portfolio even if it is one property may not be the right thing to do now.
BREXIT - with the uncertainty of BREXIT looming over us and no real obvious certainty or answers around what will happen this has caused many buyers to hold fire from purchasing and or be very cautious around what they do buy.
Stamp duty changes – this has put a halt on a lot of people wanting to purchase an additional property as it has made it almost unaffordable for some buyers to do so.
First time buyers – even though the government has helped with scrapping stamp duty for first time buyers this hasn’t resulted in a huge upturn in buying demand from first time buyers. We are and have seen a lot of first time buyers (slightly older ones) jump straight in to a house purchase rather than a flat purchase.
Supply vs demand – Ultimately all of the above has then gone on to affect the supply and demand which ultimately then dictates price moves within a market. There is current high supply of flats on the market with less buying demand. So in order to sell flats in this current market they do need to be priced keenly, even then this doesn’t always result in them selling quickly!
So the question I would ask if you are looking to sell off your rental flat is do you urgently need to sell it? Or is it something you can continue to let out, pay a little more tax then previously and not panic sell. Our view long term is bullish of the property market. The property market is going through a cycle and the smart investors will look to hold and sell in a better market.
If managing your property is causing you problems please give us a call and would love to discuss how we can help you and take the stress away.
If you need any property advice please give us a call and we would love to help.
Written by Remzi Mehmet Director & Partner