There are many things to consider but if you’re looking for an opportunity, finding one with rising fees and an elevated level of demand is a smart move, and it is easy to see why many people want to become a London landlord.
After all, rental fees are rising steadily and the demand for rental accommodation in the capital isn’t diminishing, so many people will look at the rental market and consider this to be a good option. It is important to be aware that many current landlords are struggling in the market but the problems that existing landlords face may not be as challenging for new landlords.
Current landlords have had to adapt
Landlords who have been in the market for many years will have had ways of working, a business plan and margins in place. However, in recent times, there have been many changes for landlords to deal with. Regulatory issues, tax changes, stamp duty changes and increasing fees has led many landlords, who previously enjoyed a good return on their investment, have been experiencing harsher times. As these landlords had so many things in place, it isn’t always easy to make changes or handle the new financial pressures. This has led many landlords to express a desire to leave the rental market.
New landlords will be aware of the current market conditions and it should be possible to create a business plan and strategy that takes these aspects into account. If a new landlord isn’t confident that they can turn a profit in the current marketplace, they shouldn’t enter whereas if they believe they can enjoy a profit in the current marketplace, they should enter.
London market offers opportunities for new landlords
The fact that existing landlords are looking to exit will only enhance the opportunity for new landlords, so there is a further incentive to consider the London rental market.
The optimism surrounding acting as a landlord can be found in a recent study undertaken by Sainsbury’s Banking. The report said 9% of UK adults are considering the buy to let market this year. While most of these respondents probably won’t follow through with these initial claims, a small proportion obtaining a buy to let market would still have a big impact on the market.
Of the respondents who said they were looking to obtain a buy to let mortgage, 35% of people cited a change in their personal circumstances as being their motivation to enter the buy to let market. 29% of respondents said that the opportunity which is present in the market was all the incentive they needed to consider entering the buy to let market.
If you are keen to become a London landlord, there is a fantastic opportunity to achieve success, but you will likely need guidance and a helping hand. For all the support you need in the London rental market, contact Oaks Estate Agents and we will be delighted to help.