An open letter to Shelter Scotland

admin    Uncategorized     agents

Property118

An open letter to Shelter Scotland

An open letter to Shelter Scotland: if you want to work with landlords, let’s start with the evidence

In a recent interview, Shelter’s new chief executive suggested the organisation is ready to work more closely with private landlords to address the housing crisis. LINK

She said the housing sector would need to “work as a collective” if the system is to improve and homelessness is to be reduced.

That is a statement many landlords will welcome, albeit with caution and a healthy dose of scepticism.

For several years now, the relationship between the private rented sector and housing campaign organisations has often felt adversarial. Landlords have frequently been portrayed as part of the problem rather than part of the solution, so if Shelter now truly wishes to engage constructively with landlords, that is an encouraging development. However, constructive dialogue requires something more than good intentions. It requires clarity about evidence, policy and outcomes.

That is why, following the discussion beneath a recent Property118 article examining the economics of rent control, I would like to put several questions to Shelter Scotland.

These questions are offered in the spirit of genuine inquiry.

The Scottish rent control experiment

Scotland is often cited as one of the most ambitious rent regulation environments in the United Kingdom. In recent years the Scottish Government has introduced rent caps and emergency restrictions on rent increases, with proposals for permanent rent control zones now under discussion. Many of these measures have been strongly supported by housing campaign groups, including Shelter Scotland.

Supporters argue that such policies are necessary to protect tenants from rapidly rising rents and to stabilise the housing market.

Critics, however, argue that rent controls risk discouraging investment in rental housing, ultimately reducing supply.

This is not a theoretical debate; Scotland now provides a real-world policy experiment that can be examined using actual data.

The central question

The fundamental question is straightforward; have the policies that Shelter Scotland has supported improved the availability and affordability of housing, or have they had unintended consequences for housing supply?

If rent controls successfully stabilise the housing system, we should expect to see clear evidence in the form of improved housing outcomes.

If they discourage investment and reduce supply, that should also be visible in the data.

Either way, the evidence matters.

Questions for Shelter Scotland

In the spirit of constructive dialogue, I would therefore like to ask Shelter Scotland the following questions.

1. What empirical evidence does Shelter Scotland rely on to support rent control policies?

In particular, what evidence suggests rent controls increase housing supply or long-term affordability?

2. How does Shelter Scotland interpret the Scottish experience since rent caps were introduced?

Have investment levels in the private rented sector increased, decreased, or remained stable during this period?

3. What role does Shelter Scotland believe private landlords should play in addressing housing shortages?

If the private rented sector is to be part of the solution, how should policy encourage investment rather than discourage it?

4. Does Shelter Scotland believe rent controls can operate without affecting housing supply?

If so, what evidence supports that view?

5. Would Shelter Scotland support policies designed specifically to encourage landlords to increase housing supply?

Examples might include incentives for renovation of empty homes, conversions or new rental development.

This approach to housing policy debate is not new on Property118. Several years ago, David Knox FCA, writing under the pseudonym Appalled Landlord, examined official housing statistics and local authority spending patterns to explore how policy decisions were affecting housing supply. His articles were not polemics. They were careful examinations of publicly available data and the trajectories those figures suggested. The questions raised in this letter follow the same principle: if policies are introduced to improve housing outcomes, it is reasonable to ask what the evidence now shows.

A shared objective

There is one point on which landlords, housing charities and policymakers should all be able to agree; Britain needs more homes.

The housing shortage affects tenants, landlords, councils and taxpayers alike.

If Shelter’s leadership genuinely wishes to work with the private rented sector, many landlords would welcome that conversation. but for it to be productive, the discussion must begin with a clear examination of the evidence.

Housing policy should be guided by what works in practice, not simply by what sounds appealing in theory.

An invitation to respond

This article is offered as an open invitation for Shelter Scotland to respond.

If the organisation wishes to clarify its position, explain the evidence behind its policy recommendations or address the questions raised above, Property118 would be pleased to publish that response in full.

Constructive debate, after all, is far more valuable than silence.

The post An open letter to Shelter Scotland appeared first on Property118.

View Full Article: An open letter to Shelter Scotland

Room rents rocket in UK cities

admin    Uncategorized     agents

Property118

Room rents rocket in UK cities

Sharp rises in room rents across major UK cities are affecting affordability for tenants and shaping demand as a result.

Research from flatshare site SpareRoom shows Belfast recorded the steepest increase among the UK’s 20 largest cities over the past five years.

Average room rents in the Northern Irish capital climbed 53.2% between Q4 2020 and Q4 2025.

Tenants now pay £589 a month on average, compared with £384 five years earlier, adding £2,460 a year to housing costs.

Rent affordability stretched

A director of platform, Matt Hutchinson, said: “Flatsharing has long afforded people the opportunity to live in cities, but disproportionate rent increases in recent years have created a barrier to urban living for those at the sharp end of the housing crisis.

“Affordability has been stretched to breaking point, and it’s even changing the dynamics of shared households.

“Flatsharers are getting older as younger people are being priced out of the rental market altogether, and suburban housesharing is now increasingly common as more people are priced further out of cities too.”

He added: “It’s not knowledge workers who suffer most, it’s often the lowest-paid workers – including those in essential and key worker roles, hospitality and retail jobs – who keep our cities functioning.”

Most expensive cities

The research shows the next most expensive for room rents is Newcastle with a five-year increase of 51.7%.

That takes the average room rent to £605 per month.

Cardiff ranks third, where rents have risen 49.9% over the same period to reach £666 a month.

Glasgow appears next with room rents having increased 44.5% in five years, bringing the average monthly cost to £690.

Manchester has recorded a five-year increase of 43.2%, although the latest annual figure shows a fall of 3.7% between Q4 2024 and Q4 2025.

In London the average monthly room rent now sits at £985, up from £721 in Q4 2020, representing a five-year increase of 36.6%.

National average room rent

Bradford remains the cheapest of the 20 cities analysed at £472 per month.

However, rents there are 31.6% higher than they were five years ago.

Across the UK, excluding inner London, average monthly room rents reached £670 in Q4 2025 – five years ago they stood at £494.

The average UK room rent is now £749 a month, compared with £580 in Q4 2020.

The post Room rents rocket in UK cities appeared first on Property118.

View Full Article: Room rents rocket in UK cities

Exemption from MTD on age/other basis?

admin    Uncategorized     agents

Property118

Exemption from MTD on age/other basis?

Hello, As an informative. I’m 73 and (hand) wrote a letter (a bit scrawly on unlined paper!) to HMRC. I mentioned my age, that my memory was not so good, I’m a bit doddery on my feet and not au fait with software although I can manage a basic spread sheet.

I also said I had tried some free MTD (Making Tax Digital) software (xero) but it was completely incomprehensible to me. I am retiring soon and plan to sell my properties in the nearish future.

I received a letter after about 3 weeks granting me exemption.

There is nothing I can find that mentions a specific age “limit” and it will be judged along with your other “handicaps”.

Embellish or not as you see fit! I hope that helps a few people.

Thank you,

G

The post Exemption from MTD on age/other basis? appeared first on Property118.

View Full Article: Exemption from MTD on age/other basis?

Section 24’s long shadow: what a decade of tax reform has really done to rental housing supply

admin    Uncategorized     agents

Property118

Section 24’s long shadow: what a decade of tax reform has really done to rental housing supply

April 2017 marked the beginning of one of the most consequential fiscal shifts in modern private renting. Section 24, the restriction on mortgage interest relief for individual landlords, was phased in over four years. It was presented as a fairness measure. Nearly a decade on, the deeper question is whether it achieved its wider economic purpose.

At the time, the stated objectives were clear. Policymakers argued that highly leveraged landlords were distorting competition, outbidding first-time buyers and benefiting from tax treatment unavailable to homeowners. Restricting finance cost deductibility would, it was said, level the playing field and moderate investor demand.

That was the theory.

What followed was not a uniform retreat from the sector, it was more nuanced. Landlords with significant borrowing saw effective tax rates rise sharply, interest cover ratios tightened, and refinancing became more complex. In some cases, portfolios that appeared profitable before tax became cashflow negative after tax. Behaviour shifted accordingly.

Some deleveraged while others sold selectively. Many explored incorporation, transferring activity into company structures where finance costs remain deductible, a subject frequently debated on Property118 over the past decade. The surge in restructuring conversations was reflected in media commentary. The market adapted, but it did not stand still.

The commercial effects were uneven. Some landlords with low gearing absorbed the change. Those with higher borrowing in regions with slower rental growth felt pressure more acutely. Geography, portfolio scale, and timing mattered.

The supply question, however, is harder to answer and far more important.

If the objective was to expand owner-occupation and moderate investor participation, then the relevant metric is not tax collected. It is housing allocation. Have former rental properties transferred meaningfully into first-time buyer hands? Has total rental stock contracted in specific regions? Have institutional entrants offset any exit by smaller operators? Have rents moved differently in areas with historically higher leverage?

Some data exists, clean conclusions do not.

Incorporation statistics show structural change, yet they do not necessarily reveal whether stock was lost or simply restructured. Rental growth is measurable, but causation is contested. The interaction between fiscal reform, interest rate cycles and demographic demand complicates any simple narrative. Wider reforms, including the evolving Renters’ Reform Bill coverage, have also altered landlord confidence during the same period.

What is clear is that Section 24 altered risk perception. When fiscal treatment changes abruptly, capital responds cautiously. For many landlords, the issue was not ideology but predictability. Business planning depends on stable assumptions, so when those assumptions shift, investment decisions follow.

The international context also adds perspective. Several European jurisdictions retain full finance cost deductibility within their rental sectors. Others impose caps but offset them with capital incentives or longer transition periods. The UK chose a comparatively direct recalibration. Whether that model has produced more stable long-term outcomes remains an open empirical question.

It is also important to disentangle policy from macroeconomics. Interest rates rose sharply after Section 24 was implemented. Pandemic distortions followed. Inflationary pressures compounded operating costs. Untangling the specific impact of tax reform from wider economic cycles requires longitudinal analysis rather than short-term commentary.

Nearly ten years on, the debate should move beyond fairness narratives towards measurable outcomes. If rental supply contracted materially, policymakers need to understand why. If ownership patterns shifted, the evidence should be transparent. If incorporation became the dominant adaptation mechanism, that carries its own financing and regulatory implications.

Section 24 was one of the earliest signals of a broader recalibration of landlord policy. Its long shadow remains visible in refinancing behaviour, portfolio structuring and investment modelling. It also sits within a wider reform landscape that Property118 has documented extensively, including the original Section 24 comprehensive report that examined anticipated commercial consequences at the time of implementation.

Now there is enough distance to assess outcomes with greater clarity.

Expanding the Property118 housing research panel

Property118 has recently launched its Housing Research Panel to examine long-term policy impacts across multiple housing markets. The objective is not to relitigate old arguments; it is to test outcomes against intent.

If Section 24 reshaped the private rented sector, we should be able to measure how. If it did not, that deserves equal scrutiny.

The next phase of housing reform will be more credible if it is grounded in evidence rather than assumption. Landlords who wish to contribute data, comparative insight or independent analysis are encouraged to join the Property118 Housing Research Panel and take part in shaping a more rigorous evaluation of modern housing policy.

We are also inviting the following to contribute to and utlise our research by contacting editor@property118.com:

• Journalists with access to regional rental supply data

• Economists analysing housing allocation trends

• Academics studying the relationship between fiscal reform and housing elasticity

Tax policy rarely ends where it begins; it flows through refinancing decisions, supply pipelines, rent negotiations and household formation.

A decade provides sufficient distance for reflection; the evidence now needs to follow.

The post Section 24’s long shadow: what a decade of tax reform has really done to rental housing supply appeared first on Property118.

View Full Article: Section 24’s long shadow: what a decade of tax reform has really done to rental housing supply

Rent rises show regional split in February – ARLA Propertymark

admin    Uncategorized     agents

Property118

Rent rises show regional split in February – ARLA Propertymark

Average monthly rents moved in different directions across the country in February, with several regions recording increases while others registered short-term declines, Arla Propertymark reveals.

Its latest rent and salary tracker shows the East Midlands recorded the strongest monthly rise with increases of 3.4% between January and February to £1,027.

The North West followed with a 2.8% increase, taking the average monthly rent to £1,102.

Scotland also recorded a notable rise of 2.7%, pushing the typical rent to £1,070.

PRS is recalibrating

ARLA Propertymark’s president, Megan Eighteen, said: “February’s data reflects a more varied rental landscape than we saw earlier in the winter, with a number of regions recording modest month-on-month rent increases.

“While some regions are experiencing short-term adjustments, the annual salary required to secure a rental property has generally edged upwards year on year.

“This underlines that affordability pressures remain structurally embedded despite monthly volatility.”

She added: “Overall, the data suggests a market that is recalibrating rather than correcting sharply.”

Regional rent rises and falls

Rents in the South East rose 2% during the month, reaching £1,521, while London recorded a smaller increase of 1%, lifting the average rent to £2,226.

However, Northern Ireland saw the sharpest monthly drop, with rents declining 6.6% from £913 in January to £853 in February.

Wales recorded a slight rise from £1,037 to £1,043 and the South West increased 0.7% to £1,372.

The North East recorded a 1.6% rise to £908.

Rent falls were seen in the West Midlands where the average monthly rent slipped 1.3% to £1,040.

Smaller movements were seen in the East of England where rents fell 0.3% to £1,324, and in Yorkshire and Humberside they slipped marginally by 0.1% to £954.

Salary requirements for rent

An analysis of how much salary tenants need to earn to secure the average-priced home has risen in most regions.

Scotland recorded the largest year-on-year increase from £30,300 to £32,100, a rise of 5.9%.

The North West saw a 5% increase (£33,060), Wales it rose 3.7% (£31,290), and in West Midlands it grew from £30,450 to £31,200 (2.5%).

The North East recorded a 1.9% increase to £27,240, while Yorkshire and Humberside rose 1.8% to £28,620.

The East Midlands was up 1.7% (£30,810), the South West grew by 0.7% (£41,160) and Northern Ireland recorded a 0.5% increase (£25,590).

The East of England increased by 0.2% (£39,720and the South East recorded the same percentage movement, reaching £45,630.

In London, the typical salary needed to secure the average-priced home fell 2.2%, declining from £68,280 to £66,780.

The post Rent rises show regional split in February – ARLA Propertymark appeared first on Property118.

View Full Article: Rent rises show regional split in February – ARLA Propertymark

Landlords coming back to us: We’ll relocate your tenants and sell before May 1st for a higher price than the investor market

admin    Uncategorized     agents

Property118

Landlords coming back to us: We’ll relocate your tenants and sell before May 1st for a higher price than the investor market

Three years ago, landlords flocked to us to sell their properties. Interest rates had squeezed them, and they were desperate to steady the ship. Sound familiar? You might be one of them.

We got to work, helping over 4,000 landlords sell their properties or downsize until the ships were indeed steadied. And we got the job done. Now, three years later, those same landlords are back looking to sell. Why? Because in just two months, the Renters’ Rights Bill is coming in, and landlords are getting ready to brace.

For anyone else, especially traditional estate agents, two months might seem like an impossible task to downsize a few more buy-to-lets and get ready to sharpen up for the new regulations, but not for us at Landlord Sales Agency.

This is because there are 51 days left until the Renters’ Rights Bill comes in, and our average sale time is less than 28 days.

If you need help selling, you’re going to want to get in touch with us now.

Just last week, we shared the story of a Derby landlord who came back to us for a fast sale. With the Renters’ Rights Act approaching, he wanted to exit some of his more difficult properties but knew the usual routes wouldn’t work. Estate agents meant long delays and uncertainty. An auction meant accepting far less than the properties were worth.

Specialising in landlord portfolio exits, we stepped in to secure full tenant cooperation, protecting the value of the properties and allowing us to position the sale landlord-to-landlord.

The result speaks for itself. We sold 4 of the landlord’s 6 properties to a cash buyer with no searches and no survey, avoiding what could have been a nine-month court delay. Even better, the final price came in £30,000 higher than the investor market.

His story is not unique. Ian, a Landlord who came to us recently, shared that he initially spoke to Landlord Sales Agency because he had “a rented property which still had the tenant in and I needed to sell the property, hopefully with the tenant in place.” Within a short space of time, he’d not only been matched with one of our top property experts, but he also quickly came to an agreement on price and fees etc. Ian shared that immediately after, we’d advertised the property and had a firm offer with a deposit paid within just one month.

But as with all landlord properties, it wasn’t completely plain sailing, and that’s where our team at Landlord Sales Agency excels.

“The purchaser wanted the tenant to vacate, I left this totally in the hands of Landlord Sales Agency, who served notice on the tenant. They were in contact with the tenant and helped her with relocation expenses.” Ian went on to say that everything was resolved without him having to contribute any input or deal with any stress. The tenant moved and the deal completed. “I am extremely happy with the service received and thoroughly recommend Landlord Sales Agency.”

Another landlord, Ali, echoed Ian’s sentiments, adding that he had an “excellent experience using this company. Many other agents were not interested, as I had a tenant in situ, but these guys reassured me they would sell this place and contribute towards costs to help make this transaction as smooth as possible.” He followed up with saying we were a “5 star rating” and that “the business goes above and beyond to help!”

Landlords still need to be realistic on price. You’re going to get 85% – 90% market value, and a huge part of that strategy is in listing properties for very attractive guide prices, but ultimately, with no fees, full management of the sale and a team that gets the job done faster and better than anyone else, it’s a no-brainer. What’s more, we’ve got hundreds of repeat client landlords coming to us to back that up.

So if you’re looking to sell, and you want to get the job done before May 1^st, let us do it for you.

This week in particular, we’re knocking it out of the park with landlords from the North West, so if your properties are based there, there’s no time like the present to get in touch.

No fuss, no hassle, no tenant issues and money in your bank before the Bill comes into play.

Please contact us using the form below if you need assistance.

/* “function”==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(“The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.”),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(“gform_main_scripts_loaded”,()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(“gform/theme/scripts_loaded”,()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(“DOMContentLoaded”,()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(“action”,o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(“filter”,o,r,e,t)},doAction:function(o){gform.doHook(“action”,o,arguments)},applyFilters:function(o){return gform.doHook(“filter”,o,arguments)},removeAction:function(o,r){gform.removeHook(“action”,o,r)},removeFilter:function(o,r,e){gform.removeHook(“filter”,o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+”_”+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){“function”!=typeof(t=o.callable)&&(t=window[t]),”action”==r?t.apply(null,e):e[0]=t.apply(null,e)})),”filter”==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});
/* ]]> */

/* = 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find(‘#gform_wrapper_515′);var is_confirmation = jQuery(this).contents().find(‘#gform_confirmation_wrapper_515′).length > 0;var is_redirect = contents.indexOf(‘gformRedirect(){‘) >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery(‘html’).css(‘margin-top’), 10) + parseInt(jQuery(‘body’).css(‘margin-top’), 10) + 100;if(is_form){jQuery(‘#gform_wrapper_515′).html(form_content.html());if(form_content.hasClass(‘gform_validation_error’)){jQuery(‘#gform_wrapper_515′).addClass(‘gform_validation_error’);} else {jQuery(‘#gform_wrapper_515′).removeClass(‘gform_validation_error’);}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ }, 50 );if(window[‘gformInitDatepicker’]) {gformInitDatepicker();}if(window[‘gformInitPriceFields’]) {gformInitPriceFields();}var current_page = jQuery(‘#gform_source_page_number_515′).val();gformInitSpinner( 515, ‘https://www.property118.com/wp-content/plugins/gravityforms/images/spinner.svg’, true );jQuery(document).trigger(‘gform_page_loaded’, [515, current_page]);window[‘gf_submitting_515′] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find(‘.GF_AJAX_POSTBACK’).html();if(!confirmation_content){confirmation_content = contents;}jQuery(‘#gform_wrapper_515′).replaceWith(confirmation_content);jQuery(document).trigger(‘gform_confirmation_loaded’, [515]);window[‘gf_submitting_515′] = false;wp.a11y.speak(jQuery(‘#gform_confirmation_message_515′).text());}else{jQuery(‘#gform_515′).append(contents);if(window[‘gformRedirect’]) {gformRedirect();}}jQuery(document).trigger(“gform_pre_post_render”, [{ formId: “515”, currentPage: “current_page”, abort: function() { this.preventDefault(); } }]); if (event && event.defaultPrevented) { return; } const gformWrapperDiv = document.getElementById( “gform_wrapper_515″ ); if ( gformWrapperDiv ) { const visibilitySpan = document.createElement( “span” ); visibilitySpan.id = “gform_visibility_test_515″; gformWrapperDiv.insertAdjacentElement( “afterend”, visibilitySpan ); } const visibilityTestDiv = document.getElementById( “gform_visibility_test_515″ ); let postRenderFired = false; function triggerPostRender() { if ( postRenderFired ) { return; } postRenderFired = true; gform.core.triggerPostRenderEvents( 515, current_page ); if ( visibilityTestDiv ) { visibilityTestDiv.parentNode.removeChild( visibilityTestDiv ); } } function debounce( func, wait, immediate ) { var timeout; return function() { var context = this, args = arguments; var later = function() { timeout = null; if ( !immediate ) func.apply( context, args ); }; var callNow = immediate && !timeout; clearTimeout( timeout ); timeout = setTimeout( later, wait ); if ( callNow ) func.apply( context, args ); }; } const debouncedTriggerPostRender = debounce( function() { triggerPostRender(); }, 200 ); if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) { const observer = new MutationObserver( ( mutations ) => { mutations.forEach( ( mutation ) => { if ( mutation.type === ‘attributes’ && visibilityTestDiv.offsetParent !== null ) { debouncedTriggerPostRender(); observer.disconnect(); } }); }); observer.observe( document.body, { attributes: true, childList: false, subtree: true, attributeFilter: [ ‘style’, ‘class’ ], }); } else { triggerPostRender(); } } );} );
/* ]]> */

The post Landlords coming back to us: We’ll relocate your tenants and sell before May 1st for a higher price than the investor market appeared first on Property118.

View Full Article: Landlords coming back to us: We’ll relocate your tenants and sell before May 1st for a higher price than the investor market

Landlords face £470m rent arrears across England

admin    Uncategorized     agents

Property118

Landlords face £470m rent arrears across England

Landlords in England dealt with an estimated £470m in rent arrears over the course of a single year, according to an analysis of government data.

Research of official figures by the compliance platform, Propoly, found that 210,163 households fell into rent arrears during 2024-25.

The average amount owed across the year was £2,238, producing a national arrears total estimated at £470.3m.

London generated the largest volume of arrears with renters in the capital accounting for £109.5m of that figure.

‘Significant’ scale of rent arrears

The group’s chief executive, Sim Sekhon, said: “The scale of rental arrears we’re seeing across England is significant, with more than 210,000 households falling behind on their rent in a single year.

“When this equates to over £470 million in missed payments, it underlines just how exposed landlords can be when tenant finances come under pressure.

“For many landlords, rental income isn’t simply supplementary, it’s essential to covering mortgage repayments, maintenance costs and wider financial commitments.”

He added: “It’s been a challenging period for household finances, with higher living costs continuing to stretch budgets, so it’s little surprise that a growing number of tenants are struggling to stay on top of their rent.

“However, while the pressures may be understandable, the financial impact on landlords can be severe and, in some cases, destabilising.”

Regional rent arrears

The North West also exceeded £100m, with regional arrears reaching £103.1m.

After that came the South East at £61m, the West Midlands at £58.1m, and Yorkshire and Humber with £38m.

However, the South West recorded the lowest total, at just under £14m for the year.

Ratio of rent arrears regionally

The firm also found that a regional breakdown of households in arrears reveals that of the 210,163 households affected, 23.3% were in London.

The North West accounted for 21.9% of the national total.

The South East represented 13%, followed by the West Midlands at 12.4% and Yorkshire and Humber at 8.1%.

Meanwhile, the South West accounted for the smallest proportion, with just 3% of England’s total.

The post Landlords face £470m rent arrears across England appeared first on Property118.

View Full Article: Landlords face £470m rent arrears across England

Landlords slow to sign up for Making Tax Digital as deadline nears

admin    Uncategorized     agents

Property118

Landlords slow to sign up for Making Tax Digital as deadline nears

With less than a month to go until Making Tax Digital comes into force, only 5% of taxpayers, including landlords, have signed up, according to a story in The Telegraph.

Under the controversial scheme, from April 2026 landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HM Revenue & Customs using authorised MTD-compliant software.

Landlords earning between £30,000 and £50,000 will be brought into the scheme in April 2027.

People do not understand MTD

Despite HM Revenue & Customs (HMRC) ramping up its campaign to promote Making Tax Digital, sources told The Telegraph that only around 50,000 people, just more than 5% of the estimated 864,000 taxpayers who need to register this year, have signed up so far.

Over the next three years, nearly three million taxpayers are expected to join the scheme.

Rachael Griffin, tax and financial planning expert at Quilter, told The Telegraph that many taxpayers, including landlords, still do not understand how Making Tax Digital will work.

She said: “The low sign‑up figures show that many people still do not understand what quarterly reporting will mean for them, and that gap in understanding risks becoming a pinch-point as we approach implementation.

“The risk is a late scramble among those with mixed income sources who realise too late that the new reporting cycle is not optional.”

No real benefit

As previously reported by Property118, despite the government claiming Making Tax Digital will help landlords, an accountant says this is not the case.

Simon Misiewicz previously told Property118: “There’s no real benefit beyond maybe streamlining some of the work you already do, does it help with tax returns and submissions? The truth is, I can’t see how.

“There’s no advantage for the individual in submitting quarterly returns, because HMRC doesn’t do anything with them until the end of the year. You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government”.

The government admitted in the Making Tax Digital impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.

The post Landlords slow to sign up for Making Tax Digital as deadline nears appeared first on Property118.

View Full Article: Landlords slow to sign up for Making Tax Digital as deadline nears

Rents rise 2% across England – Goodlord

admin    Uncategorized     agents

Property118

Rents rise 2% across England – Goodlord

Rents across England rose by 2% year-on-year in February, with the average monthly cost reaching £1,203, the latest Goodlord rental index reveals.

That compares with £1,180 recorded in February 2025.

The annual rent increase also sits below the 2.4% year-on-year rise reported in January and well under the 4% growth recorded at the same point last year.

The index draws on verified tenancy transactions and reflects agreed rental contracts rather than listing prices or advertised rents.

Market is stabilising

The platform’s chief executive, William Reeve, said: “Another month of cooling rental inflation reinforces the picture that the market is returning to some form of equilibrium after a series of record-breaking years.

“This is good news for tenants, particularly if rental price increases continue to sit below wage growth figures.

“It’s also a positive sign that there isn’t a supply shortage, despite the wider regulatory turbulence that landlords are navigating.”

He added: “If these trends continue into spring, it could provide a relatively benign backdrop for the Renters’ Rights Act implementation on 1 May.”

Average rent falls

Regional figures show different movements across the country and in the East of England, average rents fell to £1,305, down 4.5% from £1,367 a year earlier.

The South West also recorded a yearly fall, with rents edging down from £1,218 to £1,208, a drop of 1%.

Northern regions recorded the largest annual increases with the North West seeing average rents climbing from £1,002 in February 2025 to £1,096, an increase of 9.3%.

The North East posted a 5.3% rise, with rents reaching £806.

Regional rent rises

Elsewhere, rents in the East Midlands rose to £963, a yearly increase of 3.7%.

Greater London recorded a 3% increase, with average rents reaching £2,137.

In the South East, rents rose to £1,366, up 1.1% on the year.

The West Midlands saw rents reach £1,018, an increase of 1.8%, while Yorkshire and the Humber recorded a rise of 2.4% to £930.

Month-on-month movements across England, average rents moved from £1,201 in January to £1,203 in February, an increase of 0.15%.

The North West again recorded the largest monthly increase with rents rising from £1,057 to £1,096, a rise of 3.64%.

Voids are shortening

Goodlord also reveals that voids shortened during February after a marked increase in January.

Across England, the average time between tenancies fell from 26 days to 22 days, a drop of 15.4%.

The most pronounced reduction was recorded in the South West, where voids fell from 28 days to 18 days.

In the East of England, the figure dropped from 31 days to 19 days.

In the East Midlands, they fell from 34 days to 25 days, while in the South East they moved from 27 days to 23 days.

In the North West, void periods dropped from 26 days to 22 days and the North East recorded a reduction from 26 days to 23 days.

The West Midlands saw voids fall from 30 days to 27 days.

In Yorkshire and the Humber, the change was smaller, with vacancy periods moving from 24 days to 22 days.

The post Rents rise 2% across England – Goodlord appeared first on Property118.

View Full Article: Rents rise 2% across England – Goodlord

Should I abandon the strategy that built my wealth?

admin    Uncategorized     agents

Property118

Should I abandon the strategy that built my wealth?

Most experienced landlords remember the early logic of their property portfolios very clearly. The strategy was simple; a) acquire residential property with high tenant demand, b) finance it sensibly, c) allow tenants to service the debt, and d) hold the assets long term. Over time, rents increased, and capital values rose.

For many investors that approach produced substantial wealth.

Today, however, a growing number of landlords who successfully built portfolios over the past twenty or thirty years find themselves pausing to ask a difficult question.

Should I abandon the strategy that built my wealth?

The question rarely comes from a single problem; it is usually the result of several pressures arriving at once. Interest rates have increased the cost of borrowing, tax changes have altered the economics of highly leveraged portfolios, and regulation continues to expand across the private rented sector. Some landlords who once saw their portfolio as a straightforward investment now feel they are running a complex operating business.

None of this necessarily means the original strategy has failed; it simply means the environment in which that strategy operates has changed.

For landlords with substantial portfolios, the instinctive response is often to consider selling. At first glance, this can feel like the obvious solution because sales reduce management responsibility and convert property into cash. Yet once the numbers are examined more closely, the decision is rarely so simple.

Capital gains tax can remove a significant portion of the realised value.

Future capital appreciation disappears once the asset is sold.

Rental income, which may have been intended to support retirement, must then be replaced by income from other investments.

Many landlords discover that dismantling a property portfolio can unintentionally destroy the long-term wealth the portfolio created. This is why experienced investors often reach a different conclusion once they step back and analyse their position. The real choice is rarely between keeping everything exactly as it is or selling the portfolio entirely. A third option frequently exists; instead of abandoning the strategy, the portfolio can evolve. In other words, the strategy changes shape rather than disappearing.

For landlords with portfolios worth millions, these decisions become increasingly important. The business that once focused on acquisition gradually shifts towards optimisation, income planning and long-term family legacy. Understanding where your own portfolio sits within that transition is often the most valuable step you can take.

That is why Property118 has developed a detailed Fact Find designed specifically for established landlords. It examines the key elements of a property business including portfolio value, borrowing levels, liquidity and long-term objectives. Completing the Fact Find allows our team to understand your current position and explore what strategic options might exist for the next phase of your property journey. For many landlords the exercise alone provides a moment of clarity. The question then becomes not whether the strategy should be abandoned, but how it should evolve.

Important Notice – Scope of Planning Support

Where our recommendations touch on areas requiring regulated input, we refer clients to appropriately authorised professionals for advice and execution.

The post Should I abandon the strategy that built my wealth? appeared first on Property118.

View Full Article: Should I abandon the strategy that built my wealth?