2019 has been a difficult year for landlords. The continued loss of mortgage interest tax relief, as well as the introduction of Making Tax Digital, have not helped instil a sense of confidence in the private rental sector. As a result, many landlords are predicting more doom and gloom ahead…
The Monmouth Building Society carried out a landlord survey and here’s what they discovered.
72% of landlords believe their tax obligations will grow worse as time goes on and 71% think their costs will increase. 45% of landlords think the economy is heading to the dogs and 53% of landlords think it will get harder for them to evict problem tenants.
Landlords Contemplating Diversification
Despite the clear sense of black clouds hanging over the private rental sector, not all landlords think it’s bad news. 30% of landlords said they were planning to add new properties to their portfolio and 20% were thinking of diversifying into other areas, such as holiday lets.
“Nearly a quarter of the landlords we surveyed said they were interested in investing in a holiday let property over the next few years. Landlords also highlighted that ‘staycations’ may increase in popularity due to Brexit, so UK holiday lets could be a wise investment,” said a representative from the Monmouth Building Society.
“Holiday lets certainly seem to be a hot trend in the landlord industry at the moment – demonstrated by the fact that they are particularly popular with newer landlords. 64 per cent of new landlords had a holiday let property in their portfolio, compared to 29 per cent of all landlords surveyed.”
Holiday Lets are a Hot Trend for Landlords
Holiday lets are certainly something worth looking into if you want to diversity. With sites like Airbnb making it extremely easy to let out properties on a short-term basis, it could turn into a money-spinner for you.