Top 5 Landlord Concerns for 2024

A recent survey has unveiled the primary concerns for landlords in 2024. Discover what your peers are most worried about this year and strategies to tackle these challenges.

Molo, a digital mortgage lender, has released findings from its recent survey where landlords were asked to identify their biggest worries for the year.

The survey, which offered landlords a choice of 15 options to select their top five concerns, breaks down the responses by region, providing insight into how landlords across the UK are navigating their concerns.

Let’s delve into the top five concerns and explore ways to address them:

Escalating interest rates and mortgage payments

Almost half of all surveyed landlords (47%) identified rising mortgage rates as one of their top five concerns for the year, making it the most significant worry. Regionally, this is particularly concerning for landlords in Birmingham, where 54% rank increasing mortgage costs as their primary concern for 2024. London landlords closely follow, with 49% noting rising interest rates as a pressing issue this year.

How to manage rising interest rates and mortgage payments: Given the market volatility experienced in 2023, it’s unsurprising that rising interest rates and mortgage costs remain a top concern for landlords. However, the outlook for this year appears more positive.

To mitigate mortgage costs:  Seek advice from a broker (we can put you in touch with our fantastic advisor. Just get in touch), to review your property finances and identify potential savings or suitable products. Make sure they are ‘whole of market’ which means that they have access to more lenders than some other brokers.

Tenants struggling to afford rent payments

Just missing the top spot, 44% of landlords expressed concerns about tenants’ ability to pay rent. This issue weighs heavily on landlords’ minds, with Manchester having the highest proportion (59%) of landlords listing it among their top five worries for the year.

How to protect against non-paying tenants: Maintaining open communication with tenants is crucial if they are struggling to pay rent. Explore agreements that alleviate financial stress for both parties. Additionally, consider taking out Legal and Rent Guarantee Insurance for added protection against non-payment. We currently offer this for just 3%+VAT per month which covers rental protection for up to 18 months, legal fees and three further months of rental contributions after the potential problem tenant is evicted (accurate at the time of writing).

Changes to tax laws

36% of landlords ranked changes to tax laws among their top concerns for the year. This includes buy-to-let income tax rates and reductions in capital gains tax allowances.

How to keep up with changes to tax laws: Stay informed about tax changes by keeping an eye on the latest news (we will try to keep you abreast of any changes if we can). Seek advice from qualified tax advisors, especially those specializing in property investment. Understand the impact of any changes to your investment structure on your mortgage eligibility.

Increasing maintenance and redecorating costs

The effects of rising inflation are still felt among landlords, with 34% citing maintenance and redecorating costs as a major concern for the year. As material and labor costs remain high, landlords may seek cost-saving solutions such as DIY or investing in durable furnishings.

How to fund maintenance and redecorating costs: Maintaining properties can be costly, but falling behind can lead to longer void periods and reduced profits. Consider engaging reliable tradespeople for jobs, negotiate preferential rates by establishing good relationships with them. Explore finance options such as bridging or refurbishment finance for larger projects.

Rising landlord insurance costs

Finally, 34% of landlords are concerned about increasing landlord insurance costs. While some may opt for basic coverage, others may prefer additional protections, making it challenging to reduce costs.

Again, speak to a specialist broker who will be able to give you the best advice (we also have a great insurance broker we can put you in touch with).