Looking to Sell Your Property in Glasgow? Contact Us Today!

According to a report, one in four landlords say letting property is more stressful than they expected and two thirds admit they are more stressed now than a year ago.

The survey, for UK Landlord Tax, shows that the biggest contributing factors are late rent payments (58 per cent), funding property maintenance and repairs (40 per cent) and tax worries (38 per cent).

Although three quarters of those surveyed said they had no plans to stop letting out their property in the next year, just over a half said they didn’t expect to make any money in that time either.

“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.

Would it surprise you to learn that this was published as far back as October 2014?

Since then, as a consequence of Government legislation, conditions for private landlords have worsened considerably.

And, incidentally, an accidental landlord is one who has decided to let their property because of circumstances. This could come about as a result of inheriting property, for example.

A survey found that around 30% of UK landlords are in this category.

By contrast, many professional landlords took a deliberate decision to join the industry during the buy-to-let revolution.

And as we shall discover in this article, the future for them isn’t particularly bright either.

This is where R&T Property Solutions can help.

If you are one of those landlords who now feels it is time to cash in your profits, we will offer you cash for your property and buy from you directly.

No estate agents or middle men need apply.

We purchase structurally defective and low market value properties as well as properties from those who simply need to move on quickly.

Our professional team have extensive experience in providing you with a fast and easy transaction, often, if possible, within a week.

Our mantra is: seal the deal as quickly as possible to everyone’s satisfaction.

One reason you might want to contact us is that it is predicted that the longer term financial health of buy-to-let will weaken even further from next year.

Investors will start off facing limits in the amount of mortgage interest they can offset against their rent before working out how much income tax is due.

The changes are complicated – there is more information at gov.uk if you search ‘Individual Landlords’ – and will hit higher rate taxpayers the most.

Over the past four years, there have been 14 tax changes targeted at residential property and in particular buy-to-let landlords, making the economics of such an investment less and less attractive.

Critics say the changes may turn many profitable buy-to-lets into loss-makers – and force some landlords to sell up.

Equally worrying will be cuts to the useful ‘wear and tear’ allowances that let investors offset many maintenance costs against their rental income before working out their tax bill.

Without these there are fears that more investors may find monthly profits far harder to achieve.

Anyone selling a buy-to-let will have to pay what will soon be a premium rate of capital gains tax – as new, lower tax rates announced in the 2016 Budget will not apply to profits from property.

Finally, new Bank of England inspired restrictions on who gets a buy-to-let mortgage are being introduced over the coming months.

Lenders are now expected to consider a customer’s wider financial situation – looking at all their monthly income and outgoings – rather than just considering rental income on the property they want to buy.

So what does it all mean?

The Government is trying to find a way out of the housing shortage in the London area by targeting private landlords throughout the whole country.

Not only are they penalising landlords who have been in business for several years, they are also making it more difficult for them to expand their portfolio in the future.

That’s because banks and building societies are expected to curb buy-to-let lending in the aftermath of the vote for Brexit.

So says one of the UK’s most senior regulators, Richard Sharp, an external member of the Bank of England’s financial policy committee.

He told MPs on the Treasury Select Committee that buy-to-let lending would probably “cool significantly” in the coming months.

If you are one of those landlords who is concerned about the way the Government is treating the buy to let sector then get in touch with us.

We’re Glasgow-based but are interested in buying properties all over Scotland.

With extensive experience in residential and commercial property acquisition, our team will offer an effective, confidential and swift transaction, and more importantly, we do not require home reports.

You are under no obligation to accept our offer. Furthermore, if you use one of our panel of solicitors, we can pay the fee.