Over the least few months, we have seen a massive rise in factoring managing agents sending "cease and desist" letters to the owners of SA units, especially in Glafactors following.
I would suspect this trend will continue to increase with more factors following suit. It will certainly affect a large percentage of operators.
Is this the beginning of the end for most SA operators? Perhaps...
It will certainly affect a massive proportion of current operators. This is just one of the many issues that will start to come to the forefront over the next few years. Currently often overlooked topics like VAT, fire safety reports, planning permission, mortgage lenders consent and insurance are just a few thinks that we see many operators simply overlooking.
Looking back I'm certain we will view this as the "Golden Age" of serviced accommodation where there was very little interference or regulation (remember when all you needed for a BTL was a gas safety check?). Many people are taking advantage of this and making money while they can, which isn't necessarily a bad thing, but it isn't a sustainable long-term strategy.