Despite concerns surrounding the imminent Renters (Reform) Bill, a majority of landlords are choosing to adopt a ‘wait and see’ approach rather than making hasty decisions about their property investments. According to a recent study by Leaders Romans Group (LRG), many landlords are planning to either maintain or expand their portfolios over the coming year.
Resilient Investment Strategies Despite New Legislation
Leaders Romans Group’s research, which surveyed 630 landlords in March 2024, found that 62% of landlords intend to keep or increase their property portfolios. This comes even as the Renters (Reform) Bill is likely to be enacted within the same timeframe. Notably, 55% of the landlords surveyed stated that the Bill would not alter their investment strategies. “Many explained that their approach to property investment was long-term and that they would not rush to leave the private rented sector,” the study notes.
Landlords’ Concerns and Perspectives
While the Bill brings several changes, landlords expressed greater concern over tenants’ rights to keep pets than the potential abolition of Section 21. Some 56% of respondents viewed the pet policy change negatively, whereas 54% were concerned about the end of Section 21. However, the draft legislation also includes measures that landlords welcome, such as simpler repossession processes when tenants are at fault and the introduction of an ombudsman, which 63% and 52% of landlords supported, respectively.
Financial Worries Outweigh Legislative Concerns
The study highlights that landlords are more troubled by financial issues such as high mortgage rates, the cost of bureaucracy, increased taxes, and maintenance costs rather than the specifics of the upcoming legislation. Allison Thompson, National Lettings Managing Director at LRG, commented on the findings: “Although there are some substantial changes in the private rented sector, both political and financial, the so-called ‘landlord exodus’ is being overstated – as this research demonstrates.” Thompson emphasised the importance of landlords in the housing market and expressed hope that the government would consider their pivotal role as the Bill progresses through Parliament.
As the Renters (Reform) Bill moves to its Third Reading in the House of Commons and subsequently to the House of Lords, LRG continues to leverage landlord and tenant insights to shape the legislation effectively.
