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Survey suggests being a landlord is more stressful than it used to be
Being a landlord in the UK is becoming an increasingly stressful business with over half using their holidays to sort out issues, new research shows. Some 25% have found being a landlord more stressful than they had expected and 67% said they were more stressed than 12 months ago, according to a survey by UK Landlord Tax. The survey showed that 53% of landlords use up to 20% of their annual leave sorting out issues with their properties. Also 46% of landlords spent up to 20 hours a year on phone calls, negotiating with agents and tenants as well as sorting out insurances, house repairs and maintenance. Other contributing factors included late rent payments (58%), funding property maintenance and repairs (40%) and tax worries (38%). Expat landlords feel under the most pressure with 86% worried about the potential changes to personal allowance entitlement. However, those who had been landlords for 10 years or more felt under least pressure. Other issues and worries for all landlords included properties lying empty with no tenants in place (35%), not having enough time to deal with issues at the property due to work constraints (28%) and expensive agency fees (15%). Four legged friends were another ‘pet hate’ landlords had to tackle. While 60% of those surveyed said they don’t currently allow pets in their property, 5% discovered at the end of the tenancy that their tenants had been keeping pets without consent, and experienced some level of damage to the property. While 74% of those surveyed said they had no plans to stop letting out their property in the next 12 months, 51% said they didn’t expect to make any money in that time either. This ties in with figures from the National Landlords Association which revealed that 27% of landlords who let out a single property break even or run at a loss, meaning just a few unexpected expenses can leave them struggling. ‘Following the dramatic increase in landlords in the UK it’s not surprising that they are becoming more stressed. Letting properties is a serious business and with the number of so-called ‘accidental landlords’ increasing significantly it’s no surprise that landlords are feeling the pressure,’ said Simon Thandi, director at UK Landlord Tax. Continue reading
Research shows UK mortgage holders think they will struggle with interest rises
One in five mortgage holders in the UK have said they would really struggle to find the extra money to cover any increase in repayments, new research has found. Nearly half would find it difficult to cover up to £150 extra per month and over a quarter don’t know what their current mortgage interest rate is,’ according to the Money Advice Service which is urging home owners to plan ahead for anticipated rises in interest rates. The study, of 3,007 UK mortgage holders, found that 56% have no contingency plans should interest rates rise, 47% would find it difficult to meet an increase of up to £150 in monthly repayments and 8% said they were unaware that rates are likely to rise at all, increasing to 16% for those under 35 years old. Many mortgage holders said that their finances are stretched already. Some 69% described themselves as already financially stretched when they took out their existing mortgage and this rises to 77% for those aged under 35. Also 13% admitted they are currently living beyond their means. As a result 19% said they would really struggle to cover any rise in interest rates in their monthly repayments. A significant proportion admitted to little understanding of their current mortgage deal and what impact a rise in rates would have on them. Some 28% of mortgage holders said they didn’t know what their current mortgage interest rate is, with 59% saying they had not calculated the impact that a modest one per cent rise would have on them. And 3% admitted that they didn’t even know what their current monthly mortgage repayments are. The vast majority of respondents, 84%, said an increase in interest rates would impact their finances. Many would therefore have to take immediate action to cover the increase in repayments. Although over half, 56%, admitted they would find the money to cover any increases by cutting back on day to day basics, 35% said they would have to use money from their savings, while 15% would find an extra job, 5% would have to turn to credit cards, and 2% said they would take out a payday loan. ‘Mortgage holders need to be more mindful of the fact that a rise in interest rates is widely predicted, even for those on a fixed rate, as their deal will come to an end sooner or later. Those who purchased their first property in the last five years will have only ever known historically low interest rates, but less than 10 years ago the interest rate set by the Bank of England was 5% higher than today,’ said Nick Hill, a money expert at the Money Advice Service . ‘The smallest increase in mortgage repayments can make a significant impact on a family budget, especially for those people who are already financially stretched. So it’s a good idea to review your personal finances, start looking at where you can cut back, and plan ahead now,’ he pointed out. ‘Unexpected costs often… Continue reading
Agents report rush of business in Scotland after referendum vote
Scotland has seen renewed activity in the residential real estate market in the weeks after the historic referendum vote. Agents across the country have reported an upsurge in sales, many of which they believe had been delayed due to the upcoming vote. Indeed some buyers had asked for a clause that allowed them to get out if the vote had been a Yes. Momentum has accelerated significantly according to estate agency Strutt & Parker which reports that early indications suggest that the property markets will make up for lost time after an understandably quiet few weeks in the build-up to the vote. It has three offers made on the first working day following the referendum and across Scotland Strutt & Parker has launched 14 properties since then and is preparing another 15 for sale. The agency has organised more than 100 fresh viewings in the last week, received 11 offers and held several successful closing dates for best and final offers. This is set against very subdued activity in the month leading up to the referendum. ‘There has been a demonstrable rise in activity levels. After a lull prior to the referendum, the telephones are ringing again with inquiries from both potential vendors and purchasers,’ said Andrew Rettie, partner in charge of the firm’s estate agency in Scotland. He pointed out that the autumn market is traditionally strong but it has this year been delayed by at least a month. ‘However, the referendum is now behind us and the uncertainty surrounding it is consigned to the past. We know that Westminster is committing to plans for Devo Max and we hope these will be clarified as soon as possible,’ said Rettie. ‘Most of the buyers and sellers I have spoken to are relieved that the referendum is out of the way and that they can get on with their business life, and make the decisions they may have delayed in recent months. It is early days but evidence from the past week suggests the market will kick off from this point and that we will see a renewed vigour in the autumn,’ he added. Strutt & Parker was instructed to sell a sporting and agricultural estate early on the Friday morning after the vote which is now being prepared for the market. It also held a successful closing date for a farming and residential estate in Argyll on the Tuesday after and launched a Borders estate a week after. Other estate agents report selling 50 properties in the week after the vote. Continue reading
