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Rental Market in Decline as Property Investor Interest in BTL Declines Warns Expert

Rental Market in Decline as Property Investor Interest in BTL Declines Warns Expert

Rental Market in Decline as Property Investor Interest in BTL Declines Warns Expert

Jonathan Rolande, a member of the National Association of Property Buyers (NAPB), has proclaimed that the rental sector is undergoing a persistent reduction as landlords evacuate the market, and fewer individuals express interest in procuring rental properties. According to Rolande, these landlords are in a "peculiar position of being a minority apparently hated by all sides", as both tenants and aspiring homeowners hold them accountable for exacerbating the housing crisis.

Rolande has expressed his disapproval of the Government's inaction towards landlords, with no supportive measures or plans to render their services redundant. He has stated that landlords are grappling with an intricate and convoluted legal labyrinth in which minor mistakes can ensnare the unwary and result in colossal financial liabilities. Furthermore, Rolande has predicted that forthcoming regulations will only exacerbate this situation, rendering the prospect of buying-to-let unappealing to anyone, given the meager prospects of capital growth and returns.

Rolande has also contended that the Government's policies are detrimental to tenants, and much-needed homes may disappear from the rental market forever before sufficient housing stock has been built to replace it. This will inevitably lead to fewer choices for already beleaguered tenants and an inevitable escalation in rental costs. The Government has overlooked the fact that "owner-occupiers pay more than landlords", Rolande argued, partly due to tax breaks and lower interest rates.

These comments come in the wake of the phasing out of mortgage interest relief for individual landlords, which has significantly reduced the net income of many landlords, making it arduous for them to cover their costs and generate a profit from their rental properties. Consequently, some landlords have increased their rents to offset the additional tax expenses, exacerbating the difficulties for tenants in procuring rental properties. Furthermore, the shortage of rental properties in some regions has made it even more challenging for new landlords to enter the market, further dwindling the supply.