Most landlords are committed to their property portfolios, according to new research from Leaders Romans Group (LRG), with 68% planning to maintain their existing holdings, and 6% set to expand their investments.
A poll of its landlord clients, representing 380 properties, found that 61% favour property as a superior option for retirement, compared with 39% who chose a pension.
While 75% of landlords identify a shortage of rental properties in their area as a prime opportunity (up from 29% in February), 62% recognise increased rental yields as a real prospect, a rise from 44% in the previous survey.
Landlords are also optimistic about the continued steady rise in house prices; 40% anticipate an increase from 2024, a marked increase from 17% in LRG’s Q1 survey.
This strong outlook is reinforced by broader market trends that indicate a slowdown in housebuilding, says the firm, contributing to reduced supply and heightened demand, thereby bolstering the potential for higher rental income.
LRG anticipates that interest rates will fall in the lead-up to the 2024 general election and also has doubts about the progression of the Renters Reform Bill.
Allison Thompson (main image) national lettings MD, says its resounding message to landlords is to remain committed on the basis that property investment is a reliable and lucrative long-term option.
“Due to high levels of demand for rental properties and a slow-down in property sales, we’re increasingly providing lettings advice to homeowners who need to move but are struggling to sell or don’t want to reduce their house price,” she adds.
“Across the country, across different property types and locations, many people in this position are taking advantage of unparalleled demand in the lettings sector.”