The Covid-19 pandemic has seen confidence plummet among landlords – with those in the capital worst affected.
New data shows continued pessimism among landlords in London, despite a slight uplift overall, with confidence falling as renters continue to move out of the city as a result of the pandemic.
The figures come from the NRLA’s Landlord Confidence Index, which is produced every quarter to give a snapshot of landlord sentiment across the country and reflect key business decisions being made.
The chart highlights the path of two regions – London (which is the only city-wide area the Index collects data) and the East of England, the area where confidence has consistently been highest.
Just over 12 months ago, the final quarter of 2019 appeared to signal political certainty and a clearer future path for the UK economy. As a result, confidence rose.
However the Covid-19 pandemic saw between 300,000 and 700,000 move out of the capital – many of whom will have been tenants in the private rented sector.
The exodus from cities (not just London) has meant demand for rental properties in regions such as the South West and the East of England has grown.
In the East of England region this has led to landlord confidence being much higher than average.
As the lockdown restrictions are eased, will any economic recovery and increased demand for rented property outweigh any negatives as the sector gets back on its feet?
The LCI index shows a much larger proportion of landlords intend to sell property than those planning to expand at present. Only time will tell.
The Landlord Confidence Index in 2021 will remain a key barometer of opinion and, in turn, an indicator of how landlords’ outlook will have an impact on the supply of rented property across England and Wales.
To access the Landlord Confidence Index click here.