More than half of landlords remain committed to the lettings market despite the progress of the Renters (Reform) Bill, a new survey has suggested.
Figures compiled by major property services firm Leaders Romans Group (LRG) suggested 55% of investors in the buy-to-let market had no intention of changing their approach in light of the proposed set of new regulations. A further 62% stated they planned to either maintain or even increase their property portfolio over the next 12 months.
While landlords appear to be feeling positive about the future, the sector has gone through a bruising period. Rents have soared to record levels amid a lack of housing stock and plummeting returns for buy-to-let investors, who have been hit by a greater tax burden and the large increase in mortgage rates.
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It comes as the Renters (Reform) Bill is set to return to parliament when the Easter recess ends next week. The prospective new rulebook for landlords, which seeks to ban Section 21 ‘no-fault’ evictions and give tenants greater protections, looks likely to be watered down after a revolt by backbench Conservative MPs.
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The Sun has reported existing tenants will have to wait until the completion of a government review into the ‘readiness of the courts’ to handle eviction disputes.
LRG: Landlords committed to lettings sector for ‘long-term’
LRG, which owns brands including Acorn, Langford Russell and Scott Fraser, polled 630 landlords from across the UK in March 2024. It found that most of them viewed their investment in the rental market as being long-term.
Fewer than a fifth of those surveyed said they would be looking to reduce their property portfolio over the next 12 months, with a similar number saying they would be seeking to leave the market altogether. However, it means more than 80% of landlords are planning to continue letting out homes.
The poll also asked landlords about which elements of the Renters (Reform) Bill they felt most negative about. Surprisingly, a higher number (56%) said greater rights for tenants to keep pets were more troubling than the likely abolition of Section 21 (54%).
Meanwhile, most landlords were also positive about some of the measures the Bill is seeking to implement. For example, 52% welcomed the introduction of an ombudsman for the sector.
Commenting on the findings, Allison Thompson, the national lettings managing director at LRG, said: “Although there are some substantial changes in the private rented sector, both political and financial, the so-called ‘landlord exodus’ is being overstated – as this research demonstrates.
“Yes, there are some significant issues with the Renters (Reform) Bill but LRG and others have been actively involved in shaping this legislation so that it is fairer on landlords who, after all, are the mainstay of the property industry and depended upon by government to provide homes to some of those most in need.
“As local authority housing waiting lists continue to increase, I hope that the government will reflect on landlords’ vital role and take their views into account as the legislation passes through parliament.”
The Renters (Reform) Bill is currently at the report stage of the legislative process. Once that stage has been completed, it will be given a third reading by MPs before being put in front of the House of Lords.
