A quarter of landlords are to sell some of their property portfolio in the coming months but not in the volumes previously claimed, a big letting agency has claimed.
Research by the Leaders Romans Group (LRG) among nearly 400 landlords reveals that 68% will maintain their property portfolios and 6% expand them, leading the firm to say that previous reports pointing to an exodus are exaggerated.
Among the 26% of landlords who expressed an intention to sell, half said it was down to policy-related concerns, a quarter cited economic factors, and a further quarter mentioned "personal circumstances unrelated to income”.
This indicates that while the Renters (Reform) Bill plays a role, other individual factors are also influential in landlords' decision-making.
But the Bill is making many landlords nervous - 60% of those canvassed said it will negatively impact them as property investors, in contrast to only 6% who believed it would have a positive impact.
“It is clear from the survey we have conducted that landlords are still very much invested in the lettings industry, with 74% of them planning to continue with their portfolios, providing much needed homes,” says Allison Thompson, LRG’s National Lettings Managing Director.
The research also reveals that although the abolishment of Section 21 as part of the looming Renters (Reform) Bill is undermining confidence in landlords’ ability to get rid of problem tenants, its use remains relatively rare.
The survey reported that 79% of landlords had never utilised Section 21, and 13% had used it to evict a tenant in the past but not within the last year.
“Nevertheless, it is imperative that their viewpoints on the Renters (Reform) Bill are not only considered but that their concerns are recognised and amendments to the Bill made to ensure the future of the private rental sector is protected and homes continue to be available for those who need them.”