Landlord Confidence Index (LCI) No.22: 2024 Q2
Page 1
Page 1 - Additional commentary
The Q2 2024 Landlord Confidence Index signals a creeping sense of gloom and foreboding among landlords with portfolios in England.
The data – with fieldwork completing during the week of the General Election – shows confidence falling in every English region apart from Inner London (which served to push the all-London confidence into positive territory). Confidence fell furthest in Yorkshire and The Humber, closely followed by the West Midlands.
Confidence in Wales has, for the first time, surpassed all regions in England.
Page 2
Page 2 - Additional commentary
Landlords are increasingly reporting demand for their properties is falling. For the fourth consecutive quarter the net difference between landlords reporting demand is increasing from demand is decreasing has fallen. The net difference - +46 - is now at its lowest level since Q3 2021. At the same time the proportion of properties being empty for less than four weeks before being re-let remains at 78%. This metric peaked in 2022 and 2023, although the difference remains slight.
Even though there are a lot of tenants out there, the proportion of landlords intending to buy continues to fall. Only 9% report they are planning to purchase new properties in the next twelve months. This is the lowest figure recorded since data collection began in 2018.
At the same time very few landlords – just 7% - reported they had expanded their portfolios over the last twelve months. It was 2021Qtr2 to find the last time this statistic showed an increase in recorded buying behaviour.
The recent downward trend in landlords looking to sell was interrupted this quarter. This is the first time since the end of 2022 that the proportion of landlords thinking about selling has increased.
Finally, 69% of landlords plan increases in rents over the next twelve months. This is the third consecutive quarter in which this statistic has fallen.
