A survey by specialist buy to let lender Landbay shows high levels of pessimism about landlords’ prospects in the private rental sector.
The survey of landlords managing some 2,000 properties shows only 23% of landlords in southern England expressing a positive outlook for the future. That plummets further to just 17% in the Midlands and 13% in the north.
Pessimism is more pronounced in the north, where 44% of landlords feel negative about their prospects. The figure in the south is 39% and it’s 42% in the Midlands.
Landbay sales and distribution director Rob Stanton says: “Given the current economic climate and the state of play when it comes to taxation and future regulation, landlords in the north and Midlands can be forgiven for not feeling more upbeat about their prospects. Landlords have seen some huge changes in the BTL market – increases in stamp duty and the Renters’ Rights Bill being two very significant ones – and may have been unsettled by escalating geopolitical tensions recently, too.
“That’s all hit sentiment. While there are certainly some headwinds to contend with, it is reassuring to know so few of them are choosing to cut and run entirely.”
Landbay’s survey also uncovered differences based on business structure.
Of this landlords operating through limited companies or other businesses, some 35% expressed negative views, compared to 56% of those borrowing as individuals.
Portfolio size further influences confidence levels with those managing four to 10 properties being the most upbeat, with 31% feeling positive. And of those landlords with over 20 properties are the least confident, no fewer than 55% reported negative sentiments.
Nationally, 39% of landlords remain neutral about their business’s future, while 18% are positive and 42% are negative.
The main upside was that fewer than 1% of those surveyed plan to sell their entire portfolio.
This article is taken from Landlord Today