Record Number of Landlords Making Rental Losses

by Property118.com News Team

16:49 PM, 16th February 2012
About 9 years ago

Record Number of Landlords Making Rental Losses

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Record Number of Landlords Making Rental Losses

Landlords are starting to feel a squeeze on rental profits despite rising rents, according to a new study.

The number of buy to let landlords with large portfolios of 20 or more rental homes making a loss soared to 8%, says the research for the National Landlords Association.

The findings for the last three months of 2011 showed the biggest rise in portfolio landlords making a loss since records started in 2006. Only 1% reported a loss in the third quarter of the year.

While portfolio landlords enjoyed higher rental yields than other landlords, at 7%, average rental yields for all landlords fell in the last quarter of 2011to 5.9% from 6.7% in the previous three months.

The end of 2011 saw rental yields for all landlords fall to their lowest level in the year despite almost half (46%) of landlords increasing rents in the year and a third (34%) planning rent hikes in the first six months of 2012.

Voids – the time rental properties stood empty – fell five points – from 41% in the third quarter of 2011 to 36% in the fourth quarter.

Mark Long, director of BDRC Continental, the firm conducting the research, said: “In a difficult economy a larger portfolio of property brings greater exposure to risk and those landlords are clearly feeling the impact of rising costs and a decline in profitability.

“This is the highest level we have seen of landlords with 20-plus properties making a loss, and the biggest increase between one quarter and another. In previous waves of the research the highest figure of loss making for this group was 4% in the third quarter of 2009. Some landlords are clearly feeling the pinch.”

Despite a drop in profits, landlord sentiment remains upbeat, with 80% reporting that they feel positive about the prospects for buy to let.


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Comments

Mark Alexander

19:58 PM, 21st February 2012
About 9 years ago

Hi Paul, no that not the business I'm in. That's why I like Appliances Direct and will be doing all my business with them until I can find something better.

Tony Atkins

10:40 AM, 22nd February 2012
About 9 years ago

Integrated appliances are always more expensive than slot-in ones because they are an unusual size and the supply and demand is lower. However trade kitchen companies offer decent prices because they buy them in bundled packs from the major manufacturers and sell on to developers. It might be worth approaching the likes of Howdens or Paula Rosa and asking them if they would sell you appliances without any kitchen units.

Mark, I can't see an advert from Appliances Direct (referred to in your last post) on your home page, just Appliances Online, which is the firm you originally mentioned. They are different outfits, aren't they? Appliances Online are in Bolton and Appliances Direct are in Swindon. 

11:33 AM, 22nd February 2012
About 9 years ago

I had a Howden’s kitchen designer explain to me why integrated washing machines cost so much more.  A normal washing machine has space all round it, so when it vibrates you still have a fitted kitchen left!  An integrated washing machine need to have very low vibrations as it is touching the fitted kitchen.  This make integrated washing machine and washer/dryer a lot more expensive then low end slop in models, but  the integrated washing machines tent to be quieter.

Dishwashers seem to have very little difference in price for integrated apart from the bottom of the market, also a none-intergraded dishwasher will normal fit in the same space an intergraded model.

I don’t understand integrated fridges and freezers as they give less internal space then a free standing model.

We just take intergraded ovens for granted and they cost about the same as a standalone oven.

13:31 PM, 22nd February 2012
About 9 years ago

Reminds me of moving into a new house with a suspended beam floor - the washing machine nearly brought the house down! We had to cut the floor and install a concrete plinth! That was probably the worlds most expensive freestanding washing machine ever! 🙂

13:36 PM, 22nd February 2012
About 9 years ago

 Reminds me of moving into a new house with a suspended beam floor - the
washing machine nearly brought the house down! We had to cut the floor
and install a concrete plinth! That was probably the worlds most
expensive freestanding washing machine ever! 🙂

Mark Alexander

15:03 PM, 23rd February 2012
About 9 years ago

Hi Tony, my mistake, I meant Appliances Online.

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