Many landlords are admitting that they don’t want to rent a property to older tenants, and may give notice to those who are retired as a result of the tax increases imposed by the Government.
The National Landlords Association has issued a warning to older tenants who rent a property in the more expensive regions of the UK that they may be given notice by landlords. This news comes at a time where it is getting easier for older borrowers to secure a mortgage.
According to the organisation, the number of retired people in privately rented accommodation has soared during the last four years, by over 220,000. However, during the same period, the number of landlords who are willing to rent property to those in retirement, has halved.
In 2012, 19% of landlords were letting their property to retired tenants, while that number has fallen to 9% today. The Government has made it tougher for landlords over the last year, increasing stamp duty payable on second homes and reducing tax relief. There are also much tougher rules for landlords applying for a buy-to-let mortgage, who now have to prove that income from rent will cover 145% of mortgage payments, compared with the previous figure of 125%.
Rents all over the UK are currently increasing, with the average rent now standing £764 a month, excluding London properties. However, older borrowers are now finding it easier to secure a mortgage after retirement, providing they can satisfy the criteria. Mortgage advisers study on a CeMAP training course, so that they are aware of the various lenders and their criteria.
