Lucy Warwick-Ching addresses a reader's dilemma over a two-bedroom countryside house inherited jointly with a sister. The sister favors selling, while the reader prefers renting to await market improvement. Charles Miéville, residential property partner at Forsters, outlines the increasingly adverse rental environment for landlords. Tax reliefs have diminished, and property income tax rates are set to rise by two percentage points in 2027.

Holding costs have surged due to regulation, inflation, and mandatory safety checks for gas, electrical systems, and fire regulations. The Renters' Rights Act imposes strict rules on rent advertising, vacant possession, and tenant notice periods. Profit margins are shrinking post-Covid.

Appointing an agent incurs fees that may erode net profit, while keeping the property empty risks double council tax charges. Delaying a sale could trigger capital gains tax on future profits. Miéville strongly advises a co-ownership agreement to prevent deadlock, define cost splitting, decision-making, and forced sale mechanisms, including a right of first refusal. He emphasizes that beyond tax and regulatory issues, an open discussion with legal and market advice is the essential starting point for this personal decision.