A lettings agency - Leaders Romans Group - claims that landlords are not quitting the private rental sector in droves after all.
It claims its own small survey of landlords with 380 properties presents “a more nuanced perspective than previous reports have suggested, highlighting both positive and negative sentiments towards the proposed reforms.”
In a statement it goes on to say: “Contrary to some reports indicating a significant exodus of landlords from the market, LRG's survey of landlords representing 380 properties found that a majority remain optimistic about their investments. The survey revealed that 68 per cent of landlords intend to maintain their current property portfolios, while six per cent are considering expanding their investments.”
It says that of those landlords who expressed intent to sell, 52 per cent attributed their decision to policy-related concerns, whereas 25 per cent cited economic factors and 23 per cent mentioned "personal circumstances unrelated to income”.
LRG says ’its findings suggest “varying perspectives” on the Renters Reform Bill now going through Parliament.
But the agency admits that 60 per cent of landlords believe that the Bill will negatively impact them as property investors, in contrast to only six per cent who believe it will have a positive impact. Around 50 per cent of landlords believe the Bill will positively affect tenants, while 14 per cent anticipate a negative impact.
Allison Thompson - LRG’s national lettings managing director - says: “It is clear from the survey we have conducted that landlords are still very much invested in the lettings industry, with 74 per cent of them planning to continue with their portfolios, providing much needed homes.”
The findings also reveal that the use of Section 21 for tenant eviction remains infrequent. The survey reports that 79 per cent of its respondents had never utilised Section 21, and 13 per cent had used it to evict a tenant in the past but not within the last year.
Thompson goes on: “It is imperative that their viewpoints on the Rental Reform Bill are not only considered but that their concerns are recognised and amendments to the Bill made to ensure the future of the private rental sector is protected and homes continue to be available for those who need them.”
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Well turkeys don't vote for Xmas do they? Or tell you it's on the way.
Absolute load of bull$hit. Landlords are leaving the market on mass. Would not go anywhere near the Roman Group they are deluded
I wouldn’t touch Leaders Romans with Polly Bleat’s barge pole.
Their 360 has gone bust. There is a God.
Desperate attempt to prop up their floundering letting market, my advice to them is stay off the mushrooms
Unfortunately this is untrue. We are currently selling a large portion of our portfolio to private, residential purchasers as it is no longer economically viable due to section 24 taxation, + high interest rates and upcoming anti-landlord legislation, and generally evolving negative LL sentiment. The rental reform bill is another torpedo being prepared for launch and to be laser guided into our direction. We already have tenants who are not paying any rent despite us taking them to court. It’s pointless. They know they don’t have to. And we have one large scale management agency who are shedding staff from the letting department as landlords are selling up. We have the perfect storm now for landlords. It would defy even the imagination of Stephen King to come up with any further possible hammer blows to UK’s landlords.
Im not sure LRG have drawn the right conclusions here, and the headline should be more like, "Hundreds of thousands of landlords are leaving the rental sector, Houston we have a massive problem".
If they would like us to take their survey seriously and there is no reason why we shouldnt, then we can extrapolate the results nationally. I would say 26% of landlords saying they are selling up should not be reasurring, but considered a once in a generation national disaster of a size not seen since the PRS began in the 1990s. Nationally that will mean 1.2 million properties will leave the sector, and 2.1m tenants will be made homeless less the odd landlord who adds to their portfolio. If it was 2.6% then the LRGs conclusion might be more appropriate.
Well said, Matthew. I have seen at least 25% of landlords selling up quoted many times. What is not mentioned is how many properties those landlords have. If they average to just two properties each, that will have a devastating effect on the PRS.
Today if I put 100000 in bank, will get minimum 6000 per annum with 0 risk. For the same amount, what I get on the rental market today is 1560. Rent 1150 - maintenance 200 - ground rent 20 - mortgage 800. This is self managed. With additional sudden expenses and management fee. It is a loss. Who will stay in the rental market if you are making loss for the investment. Lot of company started laying off. With recession and no section 21., we will Bank corrupt sooner
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