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Cash Flow Concerns for BTL Landlords

With home ownership dropping to its lowest level for nearly 30 years and soaring property prices, it’s no surprise that the Buy-to-Let/PRS market is booming. It appears that neither Trump nor Brexit can deter the investors, with many landlords believing the sector remains a safe and long-term investment.

Allsops’ latest edition of “Rent Check”, a collaboration of expertise from BDRC Continental (the UK’s largest market research consultancy) and Allsops LPP, highlights that investment within the Buy-to-Let market in the long term has the potential to beat savings rates by a significant margin over the coming years, leading many landlords to put their cash into property rather than banks.

The survey, a barometer for the rental market in England and Wales, reveals that 37% of landlords anticipate growing rents over the next 6 months, showing a year-on-year increase of 36%. While tax changes and toughening lending criteria are challenging landlords, most are in it for the long term and  44% had either “good” or “very good” expectations for their letting portfolio over the next three months.

Forecasts are useful, and in many cases exciting, but if the tenant calling your property home withholds their rent or management fees your successful investment could quickly turn into a black hole, eradicating your cash flow.

There are now 20% of households in England that are privately rented, a record high according to Nationwide. The number of privately rented homes has increased by more than 75% in the last decade, standing at around 4.5 million; not to mention the PRS developments currently under construction throughout the UK. The returns have the potential to be huge, but without suitable credit control procedures in place protecting landlords, so is the risk of rent arrears.

We’re currently spiralling through the UK Housing Crisis, a continual entry of Government agendas with local body’s endeavouring to find the cure. With no quick fix available, the public are drawn towards a life of renting, regardless of circumstance. As a landlord, ensuring decent accommodation is available is only half the battle as when your tenant decides they can’t or won’t pay their rent you can be left with a cash flow crisis. But that is where we come in.

If you are an investor to the Buy-to-Let/PRS market, or a private landlord burdened with arrears, contact a member of our dedicated PRS team today and learn how we can assist. Whether you are interested in taking back possession of your property and evicting the poor payer within, or whether you simply want to get what is owed we could be your saving grace. Ask about our innovative aged debt model and see how we can assist with historic arrears from a former tenant. Contact Faye Craggs, Head of PRS, today on 0333 0300 200 or email her on

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