"It is clear from the survey we have conducted that landlords are still very much invested in the lettings industry, with 74% of them planning to continue with their portfolios, providing much-needed homes"
- Allison Thompson - LRG
Property services company, Leaders Romans Group, conducted a new survey to gauge the sentiment of landlords in response to the Renters Reform Bill. The survey results present a more nuanced perspective than previous reports have suggested, highlighting both positive and negative sentiments towards the proposed reforms.
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% of landlords intend to maintain their current property portfolios, while 6% are considering expanding their investments.
Of those landlords who expressed intent to sell, 52% attributed their decision to policy-related concerns, whereas 25% cited economic factors, and 23% mentioned "personal circumstances unrelated to income”. This indicates that while policies play a role, other individual factors are also influential in landlords' decision-making process.
LRG's survey further highlighted varying perspectives on the Renters Reform Bill. Notably, 60% of landlords believed that the Bill would negatively impact them as property investors, in contrast to only 6% who believed it would have a positive impact.
However, when considering the impact on tenants, the outlook shifted significantly. Around 50% of landlords believed the Bill would positively affect tenants, while only 14% anticipated a negative impact.
Allison Thompson, (pictured) National Lettings Managing Director, Leaders Romans Group said: “It is clear from the survey we have conducted that landlords are still very much invested in the lettings industry, with 74% of them planning to continue with their portfolios, providing much-needed homes.”
Interestingly, despite concerns and varied viewpoints on the Bill, a significant portion of landlords indicated that it would not significantly alter their approach to property investment. In response to the question, "Will the Bill change your approach to property investment?", 40% of respondents answered 'no', while 33% said 'yes', and 27% remained undecided.
Consistent with research carried out by LRG in Q1, the research findings revealed that the use of Section 21 for tenant eviction remains infrequent. The survey reported that 79% of landlords had never utilised Section 21, and 13% had used it to evict a tenant in the past but not within the last year.
Furthermore, when Section 21 was employed for eviction within the past year, it was predominantly due to breaches of lease terms. Notably, only 4% of landlords had issued a 'no fault' eviction within the past year.
Allison continues: “However, 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.”
The results of this survey indicate that the sentiment among landlords is multifaceted, reflecting a blend of optimism about the market, concerns about the impact of policy changes, and diverse views on the Renters Reform Bill's effects on both landlords and tenants.