More than a quarter of landlords selling as ‘perfect storm’ hits
A perfect storm of legislation change, rising costs and press hostility is forcing landlords out of the sector, according to our most recent research report.
Our latest Landlord Eye research report found 26% of you have sold or are currently selling at least some of your properties as a result of the Renters’ Rights Act, with a further 19% considering it.
Single property landlords in particular are considering their future in the sector, with more than 60% saying they are no longer sure they will be landlords at all by the end of next year.
Confidence falling
The Quarter 2 survey, carried out between May and June this year, showed confidence in the private rented sector as a whole has also taken a hit, with the figure in England close to record lows, and levels in Wales the lowest ever recorded.
Rising costs dominate the list of concerns, appearing in 40% of your comments, followed closely by Government policy at 33%, with a huge 76% of you to respond to the question saying you were feeling the increasing administrative burden of local licensing schemes.
So, what does this all mean?
There is no doubt that this isn’t an easy time to be a landlord.
However, it is perhaps unsurprising that in the immediate aftermath of the introduction of the Renters’ Rights Act – and with phases two and three still to come – confidence remains low.
This is compounded by a number of issues, not least the potential cost implications of the new Minimum Energy Efficiency Standards (MEES) coming down the line in the not-so-distant future.
While these are all issues we are addressing – with comprehensive support and resources available – what is of immediate concern, is the potential impact of such a high proportion of landlords selling on the supply of homes to let.
We have been in the midst of a rental supply crisis for some time now, and with more than five households competing for every rental property and well over a million households on the waiting list for social housing, we simply cannot afford to lose any more homes.
Now, ahead of the Autumn Budget next month, we are calling on Andy Burnham and his Chancellor, John Healey, to recognise the valuable contribution we PRS landlords make when it comes to providing the homes to rent the country so desperately needs.
With demand increasing and rising house prices meaning people are living in the PRS for longer, we have put forward a comprehensive proposal for pro-growth taxation policies that will support the sector.
These changes will not only help boost dwindling confidence levels but act as an incentive, not only to remain in the sector, but to continue to invest and grow your businesses long term.
More information
- Keep an eye on our news site and social media channels next week for the latest on our Budget submission.
- The Q2 survey also showed the reputation of landlords, both politically and in the media has become an increasing concern, with our chief executive Ben Beadle penning a letter directly to you explaining what we are doing to change hearts and minds, something you can read more about here.
