With the arrival of the deadly coronavirus, the entire world has experienced an unprecedented level of upheaval. The last year or so has given us an opportunity to re-evaluate what we value the most.
The shifting sands have caused landlords to experience a lot of fear and uncertainty about their positions. Employment climbed to historic highs and streams of revenue disappeared virtually overnight. The absence of any sort of guarantee of government support led landlords to question the sustainability of their incomings and outgoings.
2021 looks set to usher in a little bit more stability. The worst of the pandemic looks to be behind us (fingers crossed) and we’re starting to return to normalcy.
So, what can we expect from the next 12 months or so?
The changing priorities of tenants
The pandemic has undoubtedly led to a shift in the priorities for renters and homeowners alike. There’s been a mass exodus out of the urban sprawl into more rural areas.
Cooped up at home during the many lockdowns of the past year, many have re-evaluated the things that matter most to them. No longer is proximity to bars, restaurants and shops so important. What matters to tenants most is space – and preferably outdoor space.
So landlords who are reliant on the demand for housing in inner city areas might have slightly less competition for places than they might have anticipated. There are, however, ways of increasing interest in your rental properties.
It also affords landlords the opportunity to refresh their outdoor areas and to shift to Mastercraft doors for a luxurious interior.
Instead of back yards being little more than an afterthought, landlords have a unique chance to dress up any outdoor space with cosmetic changes that make them much more desirable. It’s a great way to capitalise on this budding trend. Residential block management services can even maintain any outdoor spaces on your behalf.
Changes in taxation
Tax is, as ever, a massively important consideration for prospective landlords.
The stamp duty holiday is set to end later this year. It’s set to slowly taper off in the months following the end of June. Previously, it had allowed buyers to save up to £15,000 on their purchase. Now, it may make the prospect of buying a property less enticing.
There have been rumblings of a change to capital gains tax. While these fears have, as of yet, been unfounded there is a very real possibility that landlords could be asked to fork over more money in taxes when they come to sell their property. It’s definitely something worth keeping an eye on.
The sector’s outlook is robust long-term
Yes, these aforementioned trends are likely to give anyone considering taking on a buy to let mortgage at this time pause but the sector looks set to offer good value for money for the foreseeable future.
If you’re aiming for stability and you’re content with your property slowly accruing value over time, the rental market still looks incredibly strong. Demand is still set to be very high over the coming year and you should be able to profit with a steady source of passive income and an asset that is appreciating over time.
