In Focus (2023 Qtr 2): Landlords, ASB & rent controls
Introduction
This is the second redesigned In Focus of 2023. Four times a year, NRLA members participate in a consultation exercise. These consultations give the NRLA a perspective on the current state of the Private Rented Sector (PRS), landlord thinking and how the PRS may develop in the short and medium term. Over 1,100 (1,124) landlords across England & Wales took part in this consultation.
In this quarter landlords gave their thoughts on:
- Current confidence and the influences on decisions to buy, sell and adjust rents.
- Concerns around the Renters (Reform) Bill and the impact it may have on landlords with tenants indulging in anti-social behaviour.
- Wales and prospective rent control legislation.
Landlords also gave more detail on how they had responded to this current period of inflation and rising interest rates.
2023 Qtr 2 In Focus - ASB & rent controls
Landlord confidence
More details on landlord confidence this quarter can be found here.
The In Focus report focuses on the record low for landlord confidence recorded this quarter. Landlord confidence is now lower than it was at any time during the pandemic. Even though landlords are seeing demand rise there are record proportions of landlords who have either sold or planning to sell.
Rents are also increasing - interest rates and inflation - together with increasing costs of property maintenance are key reasons why rents are increasing.
RRB and anti-social behaviour
Once again, an NRLA poll shows landlords would be comfortable about the loss of Section 21 IF they were satisfied the replacement mechanisms for taking back possession of a property were adequate.
That confidence is not yet present. What landlords know about the prospective change leaves them sceptical, and with the feeling proposed changes will be ineffective at combating anti-social behaviour. Those landlords who have had past difficulties with anti-social behaviour are more likely to be sceptical.
Wales & rent controls
The Welsh Government have been consulting on the possible introduction of rent controls. The NRLA asked landlords who let residential property in Wales about their policy on raising rents.
Most landlords in Wales do not usually raise rents - only one-in-five (22%) stated they had a policy of increasing rents each year. Recent rises in interest rates has forced landlords to amend this policy. It remains the case however that, were rent controls introduced, more landlords would adopt an annual policy, raising rents by the maximum allowable.
Most landlords also believe they are agreeing rents below the market rate. The introduction of rent controls could mean rapid price rises as landlords feel they could be left out of pocket under such a regime.
Landlord actions
We asked landlords how they had responded to the challenging environment they now find themselves in. Responses reflect the key pressures of mortgages, the ending of fixed term deals and how an individual, independent, landlord is resolving these pressures.
2023 Qtr 2 In Focus - ASB & rent controls
