The number of landlords declaring an income from property has hit a record 1.75 million and is tipped to rise higher.
Landlords banked a combined £14.2bn in net income from their rental properties during the 2013/14 financial year, according to the HMRC, up from £13.1bn the year before.
Figures from mortgage lenders showing a 226.1% year-on-year rise in the number of purchase loans taken out by buy-to-let investors in March is likely to mean landlords’ net income will grow further.
The buy-to-let boom was sparked by changes to stamp duty charged on second homes that came into force on 1 April.
However, landlords are being warned about a growing trend of tenants abandoning rental homes.
This is a problem faced by more than a third of rental home owners in London, says the National Landlords Association.
One landlord in North London reports: “I received a call from a concerned neighbour saying the door to the property had been left wide open. It turns out that my tenant just upped and left without any warning, taking his dog with him.
“Luckily I managed to track the tenant down and he handed back the keys and moved his possessions out, but I never recovered the outstanding rent of over a £1000.”
New data from the NLA reveals that 33% of landlords in London have had to deal with abandoned properties.
But it warns that if a property is abandoned before the end of a rental agreement, the tenant retains the legal right to return at any time – even if they are in arrears.
The NLA advises owners that taking action to prevent the continuation of a tenancy is a criminal offence. A landlord’s only option is to go through the legal process for regaining possession of an abandoned property, which can take months.
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