According to a survey conducted by Leaders Romans Group, the number of landlords planning to leave the property sector due to government regulations and impending legislation has been overstated. The poll, which included 271 landlords, found that only 7% of them intend to sell their properties in the next year, while 12% plan to reduce their portfolio. In contrast, 71% of landlords hope to keep their properties, while 10% plan to expand their portfolio.
Of the 51 landlords who plan to sell, most cited government policy changes such as increased smoke and CO detector requirements and the upcoming Renters Reform Bill. Other reasons for leaving the sector included the economy, interest rates, energy costs, lack of disposable income, and personal circumstances unrelated to income.
While a recent survey by the NRLA found that 30% of landlords intended to cut the size of their portfolio this year, the highest level of planned disinvestment seen in more than six years, the Leaders Romans Group survey suggests that the number of landlords leaving the market may not be as high as feared.
Allison Thompson, Leaders’ MD of lettings, says that the government must realize that penalizing the already stretched Private Rented Sector (PRS) will not solve the housing crisis, especially the under-supply of rental units. She suggests that the government should reconsider proposals to require rented properties to have an Energy Performance Certificate (EPC) rating of C, and plans to ditch Section 21 and assured shorthold tenancies. Thompson also warns that allowing tenants to serve notice of just two months at any time would create significant uncertainty for landlords in an already challenging market.
