Landlord confidence starting to grow
Landlord confidence in the private rented sector is finally on the up, after hitting record lows last year.
New data from the NRLA shows confidence was up by almost eight percentage points (7.9) in the third quarter of 2023, one of the largest increases since the index began.
There are a number of reasons for the change in attitudes, including the Government’s decision to abandon plans for a minimum energy efficiency rating of C in rented homes, a fall in inflation and Michael Gove’s announcement that Section 21 will only go after the courts are reformed.
Confidence was up in every region, however the upturn has yet to affect landlord behaviour, with the proportion of landlords planning to buy still at record lows, with the number planning to sell just below record highs.
Survey findings
The Q3 survey also asked landlords about their tax arrangements – along with energy efficiency plans, and proposals for a new Property Portal under the Government’s Renters (Reform) Bill.
It found Capital Gains Tax is causing headaches for landlords, with 45% saying it has been a factor in deciding to hold onto property longer than anticipated when first becoming a landlord.
When it comes to energy efficiency, more than half of landlords polled who had property at EPC D or below said they will either sell some properties or exit the market altogether should the minimum C plans come back to the table.
There is also huge backing for calls for financial support for landlords making enery efficiency improvements, with 85% saying this is vital in driving up minimum standards.
Where the property portal plans are concerned opinion is divided, with broad support for its development as a ‘hub’ for compliance and guidance, yet concerns over whether it will be more effective than the current practice of providing tenants with information directly.
More information
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