600,000 Landlords Seriously Considering Leaving Private Rented Sector
Hundreds of thousands of landlords are fed up with the government’s tax changes, and the ever increasing rules and regulations for tenants taking up so much of their time that they are seriously considering throwing in the towel and selling up.
According to a landlords insurer’s report 41% of England’s 1.5 million landlords approximately 600,000, are contemplating leaving the sector.
The firm says that landlords have to give up so much of their time or spending over the odds for property management is becoming less and less worthwhile.
The report claims that on average landlords are spending up to £3,000 per year to make sure that the rented property is ‘fit for human habitation’.
Typical costs are, £370 on refurbishments and renovations, £370 on boiler upkeep or replacement, £313 repairing structural faults and damage, £265 redecorating and £203 on garden maintenance.
66% of landlords believe that carpets are more than likely to be to damaged by tenants, 45% have concerns over damage that could be caused to walls, and 27% are worried about the white goods in the property, with 24% concerned with doors being damaged.
Landlords have to spend the most money on damage caused by tenants on replacing or repairing carpets and flooring – £322, white goods – £298, end of tenancy clean up – £178, and £149 on removing rubbish and items left behind by tenants.
The majority of landlords are covered by landlord insurance; however 13% of landlords are not.
33% said that they had to deal with ‘rogue’ tenants which was extremely stressful, whereas 46% did not ever have any problems with a bad tenant; 25% have a dispute once a year and 6% once a month.
The most common issues landlords have with their tenants are 43% with late rent payment, 41% property and items damage, 33% over cleanliness and hygiene problems, 10% over bills and disputes, 9% because of pets and 7% over sub-letting.
Heather Smith, managing director general insurance business, said: “Being a landlord is not without its challenges and it’s clear that many are feeling the strain due to tax and regulatory changes facing the industry.
“Finding the right tenant is crucial. Although the majority rarely experience tenant disputes, it’s clear that, when they do, the disputes are challenging and potentially costly.”