Landlord Confidence Index (LCI) No.23: 2024 Q3
Page 1
Page 1 - additional commentary
Landlord confidence plunged in Quarter 3 - landlords’ immediate reaction to the Renters’ Rights Bill was an immediate thumbs-down.
With a headline confidence score of just 24.5, the LCI was by some distance the lowest yet recorded. It was even below the levels seen at the onset of Covid-19. The LCI was also below levels reached last spring: In Spring 2023, then-record lows coincided with the Renters’ Reform Bill and wider macro-economic instability.
Every English region – bar the North East – dipped beneath previous lows. In Wales however, although the confidence score dipped around 11% on the previous quarter, this was nothing compared to the fall in many regions in England.For example the North West (down 40%), or Inner London (down 37%).
Page 2
Page 2 - additional commentary
One of the key fears of landlords – other than the Bill now being presented before Parliament – are the prospective changes to Capital Gains Tax. In 2023 Qtr3 17% of landlords stated CGT was an influence on their portfolio decision making. Twelve months on this proportion has more than doubled to 36%.
The proportion of landlords who have reduced their holdings hit a new high – 25%. This figure excludes many landlords who will have exited the market altogether (and so no longer complete our surveys).
The bottom chart also indicates more than half of all landlords are now actively considering either reducing their holdings or selling up altogether. Only a few landlords – 7% - are seeing the present market disruption as an opportunity to buy.
The proportion of landlords who have increased rents in the last twelve months fell for the third time in the last four quarters – although the proportion planning a rent increase rose.
Finally, after a notable reduction in the proportion of landlords reporting rising demand, this metric moved up in Quarter 3, albeit slightly (to +49 from +46 last quarter).
