Fewer landlords negative about prospects as renter demand outstrips supply
Fewer landlords are feeling negative about the prospects of their buy-to-let business and investments while most landlords remain neutral, the latest Landbay landlord survey shows.
27% of the landlords surveyed by Landbay felt negative about their business, compared to 37% at the end of last year. While 40% of landlords were neutral, just under 33% felt positive.
Those who were positive highlighted increased or steady demand as the reason for their optimism. One landlord commented: “While the world is uncertain, the demand for residential property and accommodation is and will remain very high.”
The strongest positive sentiment was among those landlords with portfolios over 20 properties. Of those with between four to 10 properties, more felt negative than positive. But the feelings of landlords with portfolios between eleven and 20 properties were evenly split between negative and positive sentiment.
Amongst HMO landlords, just over 43% felt positive about their businesses, with just under 30% feeling negative.
The findings form part of Landbay’s latest survey which questions existing landlords on a variety of topics to determine their attitude and intentions. The survey uncovers the key factors facing landlords and their thoughts on the future of the buy-to-let market.
Those landlords who felt negative cited uncertainty over a change in Government and potential rental reform. Some were particularly worried about the proposed abolition of ‘no fault’ evictions, or Section 21s, to which both Conservatives and Labour have committed.
Several landlords mentioned anti-landlord sentiment as a problem. One said: “Everyone is anti-landlord. With the lack of affordable housing, we are the scapegoats.”
However, one landlord took a longer and more philosophical view, commenting that ‘the current trend of policies regarding private rentals will have such a detrimental effect on the rental market that I do not see them either coming to fruition or lasting for long if they do. Time is on the side of landlords.’
Rob Stanton, sales and distribution director at Landbay, said: “Whichever party forms the next government, we hope that they will be committed to supporting the rental sector. Nurturing confidence among landlords is absolutely key to the health and prosperity of the UK housing market, helping to provide much needed accommodation. With affordability still a real challenge for residential buyers and demand continuing to outstrip supply, there is an abundance of tenants ready to rent across the country.
“There are many reasons to be optimistic about buy-to-let. Not only has it survived countless crises and changing governments over the years, it continues to thrive too. As a buy-to-let lender we are incredibly positive and remain committed to innovating to meet the needs of landlords.”
