The private rental market is changing fast, and if you’re a landlord or investor, you need to know what’s going on.
Big Players, Big Profits
Experts like Andy Jones, the BTR chief at LRG, are saying that the future of the rental market belongs to big landlords and build-to-rent. This is all because of a few key factors:
- Tougher Regulations: The government is getting stricter with landlords, making it harder for smaller players to manage their properties.
- Tax Changes: Labour is rumoured to be planning big changes to Capital Gains Tax and Inheritance Tax, making it even more difficult for individual landlords to hold onto their property.
- Professionalism on the Rise: The government is actively supporting BTR and professionally managed rental properties, meaning these sectors are going to boom.
The Power of Permitted Development Rights
One thing that’s driving this change is the “permitted development rights” system. This lets landlords turn commercial buildings into residential properties much more easily. Because of this, LRG says that returns on big residential property portfolios have exploded in the last five years.
A Tax-Friendly Option
So, what does this mean for you? It’s time to think bigger. Instead of individual properties, you should consider investing in large portfolios, especially BTR schemes. To make things even better, LRG suggests using a Self Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) to invest. These schemes can help you keep your tax bill down and enjoy even bigger profits.
Get Expert Help
LRG is even setting up a special department to help landlords and investors get into this booming market. Andy Jones says: “We can provide all the help you need under one roof – planning, surveying, management, lettings advice, and even a powerful online platform to help you find and manage your investments. “
The Bottom Line
The rental market is shifting, and big landlords are taking over. If you want to stay ahead of the curve and get in on the action, you need to start thinking big.