The National Landlord Association's latest campaign was called "Rent, Risk, Resolve" and highlighted four of the biggest risks facing landlords - rent arrears, rising interest rates, local landlord licensing and regulation, and the introduction of rent controls.
Rent arrears continues to be the No. 1 threat, and recent news suggests that this will only grow in 2015.
Some 32 per cent of landlords in the UK – approximately 500,000 – say they experienced rent arrears in 2014, according to the NLA.
The research shows that a typical landlord faces £1,649 of outstanding rent, totalling £850m worth of rent arrears across the UK. The findings also show that 22 per cent of landlords in the UK – approximately 300,000 – are worried that their tenants won’t be able to keep up rental payments over the next year.
This has been confirmed by a recent survey by the charity Shelter.
New research from the housing charity has revealed that 1 in 9 rent or mortgage payers across Britain, the equivalent of 3.2 million people, have admitted to having fears about making payments for their homes in January 2015, following the expense of Christmas.
Research for Shelter and Shelter Scotland by YouGov paints a bleak picture for many households this winter, with 59% of rent or mortgage payers in Britain revealing they are already struggling to keep up with their housing costs.
For the small landlord, rent arrears can be devastating.
One option for the struggling landlord can be to put their rental property on the market, and hope that it achieves a quick sale. Clearly, with tenants in the property, viewings might be difficult or even impossible, and a tenanted property may not view well if the tenants are not looking after it and keeping it clean or tidy.
On the 17th December 2014, the Guardian newspaper reported a slow-down in house sales.
A third of homeowners trying to sell have cut their asking prices since putting their homes on the market, according to the property website Zoopla, as a cooling of the housing market forces sellers to be more realistic about their expectations.
The website found that 33% of properties listed as for sale had been discounted at least once, the highest proportion since August 2012. The average price reduction is 6.7% of the original asking price, or £24,429.
Late 2015 is also when most economic commentators think that interest rates will rise from the historic low of 0.5%.
So, for a landlord in rent arrears, all the above indicators could mean that the time is now right to exit from your rental property through a sale, before the market slows further, or there is a steep decline through external financial and economic factors.
You may be fearful of putting your rental property up for sale, as it may remain void for a long period while waiting to be sold.
This is where Open Property Group comes to the rescue!
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Our offer is completely at no-obligation to you, so you have nothing to lose by getting in touch.
Open Property Group is a new name in the "quick sale of houses" sector with the mission to raise standards and improve customer experience. Give us a call on 0800 990 3939 to receive a no-nonsense cash offer for your property or send us an email at email@example.com
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