Landlord Confidence Index (LCI) No.21: 2024 Q1
Page 1
Page 1 - Additional commentary
In England 2024 nervousness about the Renters (Reform) Bill and other PRS reforms provided a check in the growth in confidence which had been the story during much of 2023. The LCI score for England in the first quarter of the new year eased to 38.9, down from 43.0 at the end of 2023.
In Wales, although the post-reform bounce in confidence is over, the bounce at least has shown itself to be sustainable. In Wales confidence is now near identical to that in England – at 39.1. Four quarters ago the Wales index score (then 26.9), was at record lows.
The quarterly change chart shows that in Inner London and the South East, confidence has fallen sharply, but in each of these regions, confidence remains well above the all-time lows.
Page 2
Page 2 - Additional commentary
Inflation continued to drive rent increases whilst the progress of the Renters Reform Bill dominates the thoughts of those reducing their portfolios.
Whilst there was a sharp reduction in perceived demand reported by landlords, the turnaround time to relet vacant properties (sidebar) did fall (ie the proportion of landlords reporting a turnaround of four weeks or less rose).
In terms of confidence this is something of a mixed message – perceived demand falling and turnaround time reducing.
These mixed messages - when taken together with uncertainty about reform - may help explain why, whilst the proportion of landlords looking to either completely exit or reduce their portfolios is falling, very few landlords are being tempted into the market to expand.
