Are Gove’s ‘levelling up’ plans a step too far for landlords?

Taxes. Regulations. Rental changes. Reforms. High standards. Section 21 being scrapped. Is this all too much for some landlords?

The government’s dramatic Levelling Up White Paper feels like another knife in the back to the private rental sector.

A national landlord register, crack-down on rogue landlords, the implementation of a national ‘decent homes standard’ and moves to abolish section 21 ‘no fault’ evictions; it’s easy to see why so many landlords are anxious about the changes.

Frustration

Many landlords are already worried about the looming EPC and ‘decent standard’ refurb costs being forced through by the government.

On a £60,000 property, which may only earn £6,000 a year in rent, a £10,000 to £15,000 refurb raises the question: is it worth it, or is there a way out?

What’s more, many landlords have been hit with the mammoth task of incorporating their portfolios. It’s safe to say, the landlord sector isn’t what it used to be. But what are the solutions?

Limited company

Incorporate, absorb the costs and hope things get better could be an option, and there are plenty of companies out there that are rising to the challenge and providing landlords with a service to do so.

Property118 are landlord incorporation specialists who can solve Section 24 problems by efficiently transferring property rental businesses into Limited Companies.

This solution works well for those who can fork out the fees, and are resisting selling because of Capital Gains Tax, but is CGT really a problem?

A deeper dive shows it might not be as bad as landlords think. With the decision of how best to manage the equity in portfolios, another option could be to sell up and cash in.

Selling up

It’s a route that many landlords are taking. Landlord Sales Agency is the leading portfolio exit specialists that have a credible track record when it comes to selling, and they’ll sell your entire portfolio in one sitting for 80 – 90% of the market value.

It takes handles all the hassle and delivers a lump sum for the whole portfolio in your bank in 7 to 21 days.

Expert view

David Coughlin, CEO of Landlord Sales Agency says: “You can either look at the changes as a frustration, or an opportunity to get out now while you still can.

“I’m selling my own portfolio and at Landlord Sales Agency our team know exactly what to do to help other landlords do the same.

“Between £2 million in the bank and the chance to lose the headaches and retire, or all the money we’re going to end up forking out as the government makes things tighter and tighter, I’d pick cashing in right now.

“We’ve had a good run of it, it’s now time to take the lump sum and reinvest in other business projects or retire and relax.”

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