I have been investing in residential property to rent in the UK for over 40 years and until now I have always felt optimistic about the future, now I can see the storm clouds gathering and I want to share some of my concerns to enable you to consider what impact, if any, these might have on your own investments. My rental income has allowed me financial freedom since 1980 and I fully expected this to continue for the rest of my life but recent events have made me question whether this will now actually happen and I wonder "How safe is my pension fund?" My work on behalf of the National Landlords Association and as a trainer for the Midlands Landlords Accreditation Scheme, involves keeping up to date with everything about renting in the UK and brings me into contact with thousands of landlords and others who are involved in the business. I engage with many more landlords through discussion fora on internet sites and this too adds to my learning. In this book I have explained why investing in property for rent in the UK may no longer be "as safe as houses". I have explored the issues which are causing my concern and I have reported on my findings. I have tried not to impose my own opinions, preferring you to draw your own conclusions and to carry out further investigations. The subjects I have explored include, the future of financing your investments, the dangers of buying below market value, regulation and legislation and how it is stifling private renting, the uncertain future of the student letting market, the changes made under Welfare Reform and the impacts these might have on rent arrears, the future of Letting and Managing Agents and other important issue. We all know that the private rented sector (PRS) is now a vital part of the housing provision in the UK but landlords are often seen as the "fat cats" and since many people are struggling to pay their bills we are attracting the attention of those who resent us and some who see us as potential cash cows. The lenders are now wary of supporting landlords who let to some tenant groups and in particular they seem to have completely misunderstood the licensing of residential properties. At the same time local authorities see licensing as a means of raising revenue under the guise of improving standards. More licensing and less money available to investors leaves landlords with a ready market but no means to access it. Those of us who have already invested in HMO's are now at risks from the use of Article 4 Directions because of the requirement to provide evidence of established use. Those of us who have concentrated on families or single occupancy are facing the fact that, in the present economic climate, any of our tenants can become reliant on benefits to pay their rent. Welfare reforms have not only reduced the level of support to tenants, future changes may also increase the level of rent arrears, this has been proven in the areas where Universal Credit is being piloted. Letting to students has, for many years, been seen as very lucrative and a safe investment but the huge increase in purpose built student accommodation coupled with the increase in fees being charged by universities is already decreasing the number of tenants living in privately rented properties and changes to immigration rules are set to reduce the number of students from coming overseas to study in the UK.
