A prominent lettings agency claims the Renters Reform Bill is not proving a deterrent to buy to let investors.
The Leaders Romans Group says its latest survey shows 6% of landlords intending to maintain or increase their portfolio over the next year.
LRG conducted the research among 630 landlords in March and asked whether the Bill influenced their investment decisions.
Some 55% said that they did not plan to change their approach to property investment as a result. Many explained that their approach to property investment was long-term and that they would not rush to leave the private rented sector.
The research also considered which aspects of the Bill caused the greatest concern to landlords. Perhaps surprisingly this was not the potential abolition of Section 21, but tenants’ right to request to keep a pet.
Asked about whether the proposed change regarding pets was positive or negative for landlords, 56% said that the impact would be negative. In comparison, 54% said that the abolition of Section 21 would have a negative impact.
Landlords saw some positives in the draft legislation: 63% said that easier repossession if a tenant is at fault was welcome and 52% supported the introduction of an ombudsman.
Rather than being significantly worried about the imminent legislation, landlords’ concerns are mostly financial, relating to high mortgage rates, the cost of bureaucracy and regulations, increased taxes, the cost of overheads such as service charges and maintenance costs, and VAT on contractors’ fees.
Allison Thompson, National Lettings Managing Director of Leaders Romans Group comments: “Although there are some substantial changes in the private rented sector, both political and financial, the so-called ‘landlord exodus’ is being overstated – as this research demonstrates.
“Yes, there are some significant issues with the Renters (Reform) Bill but LRG and others have been actively involved in shaping this legislation so that it is fairer on landlords – who after all, are the mainstay of the property industry and depended upon by Government to provide homes to some of those most in need.
“As local authority housing waiting lists continue to increase, I hope that Government will reflect on landlords’ vital role and take their views into account as the legislation passes through Parliament.”
This is the latest in a number of surveys by Leaders Romans downplaying the impact of the Bill which is set to receive its Third Reading in the House of Commons imminently and will then move to the House of Lords.
