By Whether you are a first-time property investor with a buy-to-let or two, or a seasoned landlord with an established portfolio, being a landlord in the current property market is no easy feat.
The combination of economic uncertainty, interest rate increases, rising mortgage costs, and impending regulatory changes has left many landlords wondering about the future of their investments. Amidst this evolving context, landlords need to secure their financial future.
The latest interest rate increase by the Bank of England, the 14th one in a row, has added to the uncertainty for landlords.
With rates at their highest point in nearly two decades, the cost of buy-to-let mortgages are putting pressure on landlords, making it essential for them to seek efficient ways to maximise rental income and reduce expenses.
Furthermore, the Renters Reform Bill is set to bring significant changes to the rental sector.
While it aims to improve the rental experience for tenants, landlords must navigate potential implications that could affect their rental income and property management practices.
With new regulations potentially reshaping the rental landscape, landlords must also be prepared to adapt to the changing regulatory conditions.
There are two leading residential property investing strategies for landlords:
- Rental income: This is where the income generated by renting the property exceeds the total costs of financing, letting and maintaining the property.
- Capital appreciation: The goal of this strategy is to purchase a property with the expectation that its market value will appreciate significantly in the future, allowing the investor to profit from the sale of the property at a higher price.
Given the current backdrop, both strategies are at risk of failing to meet the investment objectives of landlords and property investors.
This is evidenced in research published by the National Residential Landlord Association (NRLA) and research consultancy BVA-BDRC who announced that one in three (33%) of private landlords in England and Wales planned to reduce their portfolio, an all-time high.
With this grim picture, is there any hope for landlords?
Landlords are scouring the market for services to augment their strategy with rental advances, shared-cost property renovations, longer-term leases, maintenance plans and even self-management rental platforms.
These may provide some relief but do not solve the immediate and existential challenges facing landlords.
Fortunately, new solutions like Keyzy for Landlords can help buy-to-let investors navigate the choppy waters by securing steady rental income and reduce the total cost of property management.
As property investors with the mission of helping more first-time buyers onto the property ladder, Keyzy came up with a lease-purchase arrangement that aligns landlords’ interests with their long-term tenants’ goals of home ownership.
The benefits to landlords are comprehensive and create long-term financial security:
- No property maintenance costs
- No property or letting management fees
- No vacancies or void periods
- Advanced tenant vetting based on digital lending best-practices
- Corporate guarantee on rental income
Landlords already on the platform have secured up to 60% more net income each month and have agreed to a future sale price in three years’ time at a premium to the current market price.
In conclusion, the journey of being a landlord in today’s dynamic landscape requires adaptability and forward-thinking strategies.
As landlords face challenges like interest rate increases, rising mortgage costs and regulatory changes, it’s crucial to explore innovative solutions like Keyzy for Landlords.
Embrace the future of property management and secure your financial success with Keyzy for Landlords, the potential saving grace for landlords seeking stability and prosperity in this new reality for the rental market.
Visit our website to learn more or email us at landlords@keyzy.com
my understanding is this is a great alternative strategy for BTL but is still not paying the desired returns anymore due to the rising interest rates and mortgage costs.
if anyone comes up with a solution im all ears