Unintended consequences

Property Investors are losing their nerve, evidenced this week by mortgage figures from UK Finance showing advances to landlords down 75% on 2007 and falling – to the extent that a Times headline over the weekend read “Days of amateur landlords drawing to an end”.

Were you one of many who invested in property after the usual sources of returns dried up in 08/09? We know this was partially caused and mishandled by short-sighted [polite term] Politicians with the result that over 2m investors have been left wondering what to do next. The daft thing is it was a similar bunch of clowns, albeit from a different party, later worried that the possible end of the low rates, that had caused the original issue, would bring about another apocalypse when landlords all headed for the exit as rates rose. So they blithely decided to Tax and strangle this overwhelmingly well-meaning group who’ve quietly been supplying the fastest growing living sector in the UK. Like the Tax saga on diesel cars, Politicians really don’t care about the longer-term consequences.

If you are an investor, the chances are you’ve only just noticed the effect on your latest Tax Return as it’s the first year the changes Osborne made will have really bitten, you will now be asking yourselves what you should do. For many of you, it means having to put money IN to your rental property rather than getting a return. For many having an extra property is something you’ll leave to kids, or move in to yourselves at a later date, so cost isn’t such an issue. But for many the extra income boost has been welcome and they really care about both their tenants and properties.

I’d love to know more about what you, as a landlord or owner of a second property, are going to do. Sadly estate and lettings agents are simply not good at acting together to try and lobby Government, who have divided and conquered as a result. Many do an excellent job of looking after properties on behalf of landlords and it’s the few rotten agents who haven’t helped the industry’s case. Do you think you NEED an agent or can you DIY, and are you confident to do so?

Let us know what you think and what you’re going to be doing – anonymously if you prefer!