Increased costs 'harming landlord prospects'

Increasing cost levels of operating within the buy-to-let sector may be driving many potential investors away from the sector, experts have claimed.

The Residential Landlords Association (RLA) has indicated that growing amounts of rules and regulations are also damaging the prospects of landlords.

Mark Butterworth, a director at the RLA, noted that measures such as licensing, energy performance certificates and tenancy deposits could affect the decisions of potential landlords.

He said: "The raft of recent legislation and the payment of housing allowance to tenants rather than landlords is bound to have an effect on the numbers of properties to rent.

"The costs and administration involved in renting properties now is having an effect on margins to the point where many are wondering whether they have a future in the market."

This follows recent figures from the Royal Institution of Chartered Surveyors revealing a fall in rent levels over the past quarter.

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