Two-fifths (44%) of landlords are worried about tenants being unable to pay rent as we head into the new year, highlighting how fragile affordability has become, research from mortgage lender Molo has revealed.
Manchester investors are most concerned, as 59% in the city voted that within their top five worries for 2024.
Mark Michaelides, VP of strategy at Molo, said: “Rising costs can be stressful for both tenants and landlords, but there are ways to effectively handle late payments without resorting to extreme measures, such as eviction or court proceedings.
“In a recent study, we found that over half (54%) of UK landlords have set up payment plans to help tenants with late payments.
“It’s important to have honest conversations with your tenants, and if needed, work with them to come up with a solution that is best for both of you.”
Nearly half (47%) of landlords surveyed said that mortgage rates going up is one of their top five worries for 2024.
Their third biggest worry is buy-to-let income tax rates and reduction of capital gains tax allowances (36%).
Michaelides added: “The seemingly ever-changing tax landscape can feel difficult to navigate. With the recent changes, many landlords have seen their profits impacted.
“Making sure you’re claiming all deductible expenses can be a way to help reduce costs. For example, agent fees and costs involved with repairs to the property can be deducted from your overall rental income.”