In Focus (2021 Qtr 4): Accessibility, safety and standards

Introduction

This research seeks to collect landlord views of specific policy developments and proposals. It also attempts to understand landlord motivations and how and why landlord objectives may change.

By the time In Focus is published, the survey results have been closely analysed. The NRLA quarterly survey programme also forms part of the evidence base when it is necessary to respond to government. 

This report presents insights on the following: 

1. Landlord confidence across England and Wales.                             
2. Landlord perspectives on the topic of accessible properties: the experiences of landlords and the practical barriers facing those landlords interested in meeting the needs of this market.
3. Current issues in Safety and Standards - focusing on energy efficiency and EICR regulations.

Landlord confidence

The 2021 Landlord Confidence Index (LCI) for Quarter 4 provides more in-depth analysis but in summary:

1. The overall landlord confidence score rose for the fifth consecutive quarter.
2. The “national confidence score” of -0.3 is the highest confidence score on record.
3. London has continued to close the gap on other regions in terms of confidence.
4. The key story of this quarter is the high number of regions noting positive confidence scores. 

Accessibility

The proportion of landlords who currently let to those with accessibility needs is low. These tenants are most commonly pensioners, though 40% were of working age.  

Most landlords who hadn’t made adaptations have simply never been asked to do so. Many landlords are therefore unaware of the level of demand for such properties.

There is a clear market failure - the supply side of the rental market is uninformed about the true level of demand. As a result a landlord's expectation is that they would have to meet (1) the cost of adapting the property and then (2) repurpose that property at the end of a tenancy. This makes it uneconomic to make adaptations. This is perfectly rational behaviour. 

The Disabled Facilities Grant provides a funding mechanism to help meet costs. But the existence of the grant is itself not enough to address market failure and the asymmetry of market information between landlords and would-be tenants. One key piece of evidence here is the lack of awareness of such a grant. 

The grant itself will not itself communicate to landlords true market demand. Facilitators - here local authorities - have attempted to mediate and encourage landlords to participate in schemes designed to increase the supply of adapted properties. 

However terms and conditions of such schemes need a critical re-evaluation. Landlords need to feel like active partners in these initiatives.  

Safety & standards

Just one third of landlords believe they will have all their properties to an EPC “C” rating by 2028 (33%). This is down from 2020, where 45% of landlords thought they would be able to attain this standard for all their properties.

Almost half of landlords do not expect to be able to achieve this target for at least one property. The Government’s broader energy efficiency objectives becomes precariously placed. Intervention through a significant funding programme is one option which could allow landlords to make these changes.

Landlords were also asked about awareness of the need for Electrical Installation Condition (EIC) reports. Awareness is high among landlords. There is also evidence which suggests more landlords are now receiving correct guidance from electricians regarding the timing of EIC reports.

However, although landlords reported an increased proportion of electricians were now getting the advice correct, there is still a substantial minority getting it wrong.  

Nick Clay Research Manager

Nick Clay MSc, PgDip is the lead researcher for the NRLA. He previously worked for the RLA where he introduced the Landlord Confidence Index. Nick takes responsibility for the Research Observatory's content and rigorous approach to data analysis. He is a Certified Member of the Market Research Society.

Nick was formerly a Senior Economist for a multi-national consultancy. He has expertise in business support and entrepreneurship. He has written academic research, undertaken evaluations and developed strategies for business support organisations across England & Wales.

See all articles by Nick Clay