Private Rented Sector Competitors Waiting in the Wings

I have always said that the biggest threat to private landlords comes from external sources and especially from new competitors. Unfortunately, these new competitors are rarely on most small landlords radars, which is not surprising really, because so far these new competitors have not really been all that active.

Most landlords tend to prefer to worry and huff and puff about daft, fiddly and pesky new government initiatives and red tape (think energy performance certificates, landlord registration proposals etc) or semi-transitory financing issues like expensive and rationed buy to let mortgage lending.

But by ignoring new competitors, small landlords are missing the bigger threats.

Unite

For example, I read recently that Unite, the lettings company which specialises in building, letting and managing student accommodation, is attacking the market share of private landlords by offering big discounts in several major cities according to a story on the www.studenthousing.co.uk website.

I am not surprised. I have always warned small landlords embarking in the student letting area (especially in smaller cities in the UK) to be very careful and make sure they are fully aware of what the likes of Unite have got planned for the student city they are investing in.

Even if the swanky new Unite apartment being built nearby is at a rental well above what you are offering in your student let property, the very fact and presence of the new stock on the block WILL drive rents down, so it WILL end up affecting the small landlord.

Piece of the Action for the BPF

As I have mentioned on this blog too, the likes of the British Property Federation (BPF), the big institutional guns in the City of London and the bigger property firms like Grainger would love to have a bigger presence in the private rented residential sector and they keep badgering the government to give them special tax breaks (the only way they can compete with the efficiency of the small scale private landlords.)

All landlords and their representatives in the NLA and RLA should be aware of these competitors. With the private rented sector growing all the time, the attention of the big boys is not going to go away in a hurry.

And both Labour and Tory administrations like big business because it can get things done fast – like build lots of houses. Small pesky landlords, whilst they have grown fast, will take just too long to do the same. This is no good to a government that is facing a housing crisis.

Getting the big boys in is seen by the Government as a good bet. Like Tesco in food retailing, the big property companies can deliver. Small scale landlords should watch out.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of Landlord Information.

I’m David Lawrenson, a landlord and property viagra online cost investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector

Primarily I am a consultant to banks, local authorities, social housing providers, insurers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models etc.)
I also write for property websites and am regularly quoted by the media.

Services for Private Landlords

We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased Buy to Let Advice on a one-to-one mentoring / coaching basis or through our occasional group seminars.

AT OUR WEBSITE LETTINGFOCUS.COM:

TO GO TO THE HOME PAGE OF THIS BLOG click here: Blog

You can also use the tags and categories to read blog posts on related posts. (To find relevant posts from before 30 April 2010 you can also click on LettingFocus’s Old Blog  – Categories, then search from the list for a topic that interests you and click to read all the posts we have written under that Category / Topic.)

THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page

For general info on our CONSULTING SERVICES click here: Consultancy and Seminars

For ONE TO ONE PRIVATE CONSULTANCY FOR PRIVATE LANDLORDS click here: Property Mentoring

NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event

We have OFFERS on services and products here: Services and Products for Landlords

TO READ CLIENT TESTIMONIALS – from both commercial organisations and private landlords click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER
simply send an email to [email protected] – Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE? IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.

PLEASE GET IN TOUCH!

See our TWITTER PAGE: Twitter

Copyright of Blog: David Lawrenson 2010. This blog is updated roughly once a week usually on a Monday or Tuesday.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.