In the face of ongoing challenges in the housing market, a new report by OSB Group highlights a proactive approach by landlords in the Private Rented Sector (PRS), demonstrating a commitment to growth and tenant well-being. The “Landlord Leaders” survey reveals a substantial majority of landlords are not only planning to expand their property portfolios but are also taking significant steps to enhance tenant relations and adapt to regulatory changes.
A striking 69% of landlords surveyed are in the process of or have plans to increase their portfolio size, a figure that rises to 77% among professional landlords. This growth-oriented mindset is coupled with a positive outlook on the future of the landlord profession, with 42% expressing optimism and an additional 24% maintaining a neutral stance.
The survey underscores a shift towards more structured business models among landlords, with 65% considering or having already restructured into limited companies or similar entities. This move is part of a broader strategy to navigate the evolving legislative landscape, with two-thirds (66%) actively investing or planning investments to remain compliant with new regulations. Furthermore, nearly 60% of respondents are looking to expand their teams, and a significant 68% are dedicating more time to enhancing the tenant experience.
Jon Hall, Group Managing Director Mortgages and Savings at OSB Group, reflected on the findings, stating, “Landlords play a critical role in society, and this research clearly demonstrates that they are optimistic and committed to the future of the sector.” He emphasized the comprehensive approach landlords are taking, which includes financial planning, business growth, and fostering positive tenant relationships, as indicative of a long-term commitment to improving the PRS amidst challenges.
The motivation behind landlords’ activities is multifaceted. Earning potential and the opportunity to pass wealth to future generations top the list of reasons for investing in rental properties. Additionally, the desire to make a positive impact on tenants’ lives is significant, with 75% of landlords actively seeking to better understand and meet their tenants’ needs, and 25% aiming to make a lasting positive difference.
Hall concluded, “This latest research reinforces OSB Group’s view that the journey to professionalisation is one that many landlords are committed to.” He promised continued support from OSB Group for landlords and brokers, highlighting the shared goal of fostering a thriving, optimistic future for the PRS.
