private Landlords Outlook for 2022
So, let’s reflect.
Well, here we are on the edge of a New Year.
Landlords in most areas have enjoyed capital growth as inflation feeds through to house prices and interest rates stay reasonably low, at least for now.
Only in inner parts of big cities is the picture less rosy especially where there has been a lot of excess building of new build flats. Here, as people have moved out of the city to work from home, rents often remain below where they were pre the “pandemic” start and some property prices are also depressed, especially flats, reflecting the greater demand for outside space.
The dark shadow of Grenfell hangs over a lot of flats too. Many have unresolved cladding issues. Prices of such property remains very depressed.
In 2022, I see more inflation feeding into house price and rental gains, though folks who are mortgaged will feel the squeeze a bit from rising interest rates.
More insane government restrictions due to the “pandemic” will only act as a drag on the economy and will hold back growth, though the supply constraints this insanity causes will be a further boost to inflation, which is also good for house prices and rents, though bad for people’s ability to afford rents, unless their wages go up to match. A big “if”.
A big, dark cloud is on the horizon with the government’s desire to get landlords to get their properties up to Grade C on their EPC rating.
I do not see much government help being available to landlords to achieve this. They have spaffed so much on pointless exercises like Track and Trace, shut downs and feeding the voracious beast known to all politicians as “Our NHS”, there is no money left.
I have long said that this government does not like small, private landlords being so key in the private rented sector and this request for all rented properties to be grade C is, in my view, in part useful to smoke out some small landlords, so the likes of Aviva, Legal and General, Lloyds Bank and big foreign investors can gobble up more of our sector, with its safe returns. This will keep them happy as they increasingly grumble at being strong armed into buying lousy, risky and often loss-making government bonds to pay the ballooning “pandemic” debt.
But hey, the likely capital growth and rent inflation we have enjoyed and will likely enjoy in 2022 too, will help pay for the cost of the upgrades, so we should be able to keep Doom Goblin Greta happy after all. Just remember to keep some cash back for the upgrades and don’t leave it too late to do it or the shortage of tradesmen will be even worse when everyone is clamouring for the same works.
The “pandemic” has kept Westminster busy with the “deadly bug” and stopped them dreaming up new laws and regulations for the private rented sector, so that’s one silver lining.
I have written about all these issues in our various posts this year – see the links below.
PERUSE LAST TEN BLOGS ON THE RSS FEED: Click Here
In the meantime, I wish you a happy and peaceful Christmas and may peace be with you.
Services for Private Landlords
We help landlords and property investors by showing them how to make money in the private rented sector using ways which are fair to tenants and which involve minimal risk. Our advice is completely independent.
Services to Businesses, Charities and the Public Sector
We advise a range of organisations too – public, charities and private – to help them develop and improve their services and products for private landlords. David Lawrenson, founder of LettingFocus, also writes for property portals, speaks at property events and is regularly quoted by the media.
HOME PAGE OF THIS BLOG: Blog
THE HOME PAGE OF THE MAIN SITE: http://www.LettingFocus.com
For general information on our CONSULTING SERVICES: Consultancy and Seminars
For ONE TO ONE PRIVATE CONSULTANCY FOR PRIVATE LANDLORDS: Property Advice
CLIENT TESTIMONIALS – from both organisations and private landlords: Testimonials
IN THE MEDIA: Recent Press Coverage
“SUCCESSFUL PROPERTY LETTING”:
Our book is the highest selling personal finance and property book in the UK. Click here to Find Out More and Buy it. And if you are from an organisation and would like to bulk buy, please ask us for special rates.
“BUY TO LET LANDLORDS GUIDE TO FINDING GREAT TENANTS”:
Also, get this great new guide here, which covers everything you’ll ever need to know to avoid either you or your letting agent getting anyone other than the perfect tenant. Click Here to Buy It.
BOOK FOR TENANTS:
Kids going off and renting for the first time? My Book for Tenants is also Available
TO JOIN OUR FREE NEWSLETTER MAILER which goes to over 3,980 people (as at Dec 2020) just send an email to [email protected]
We do not send spam or sell our mailing list to advertisers, though we occasionally mail landlords about good products from third parties. Please put us on your “white list” to ensure you receive our emails.
OFFERS ON PRODUCTS FOR LANDLORDS and TO ADVERTISE YOUR PRODUCTS to LANDLORDS: Landlords Resources
PERUSE LAST TEN BLOGS ON THE RSS FEED: Click Here
NEXT ANNUAL SEMINAR EVENT FOR LANDLORDS: Landlord and Property Letting Seminar
TWITTER PAGE My thoughts on property, personal finance, music that I like, sport, Corona Hysteria plus a lot of other random things: Twitter
COPYRIGHT: DAVID LAWRENSON