Hard times for Britain's smallest private landlords

Hard times for Britain’s smallest private landlords

London 24th July 2012: The latest research from BDRC Continental’s independent Landlords Panel survey reveals that Britain’s smallest private landlords – those renting out one property - are struggling as they feel the impact of voids and rent arrears.

According to the latest data from the Landlords Panel, the proportion making either a small or large loss has doubled from 8% in Q1 2012 to 16% in Q2. Those with more properties fare far better: 40% of those with 5-10 properties, 69% of those with 11-19 properties and 68% with 20+ in their portfolios make a profitable full time living from letting.

Proportion of landlords making a loss by portfolio size

In Q1 the report identified a fall in rental arrears for the first time in a year, however by Q2 the trend had reversed, bouncing back to 49% from 45%. Almost one in ten single property landlords (9%) experienced voids in last three months, which last just over two months or an average of 69 days.

A future concern for all private landlords is that the Q2 data points to a third consecutive decline in perceived tenant demand, with a continued shift from ‘increasing’ demand to ‘no change’. At present however more landlords are experiencing demand than seeing it decline (net position +27%) but this emerging trend could suggest more trouble on the horizon.

Commenting on the latest Landlords Panel findings Mark Long, Director for BDRC Continental, says: “It is a tough time to be a private landlord if you have only one property in your portfolio. Over the last quarter profitability has clearly taken a dive. Regardless of their size, there is no question the private rental sector relies on them, and whilst a third may aspire to increase their property portfolio, they will only be able to achieve this goal and add to Britain’s privately rented housing stock if they can make a profit from that one property.”

Ends

Note to editors

This release contains a selection of findings from the Q2 2012 BDRC Continental/NLA Landlords Panel study. Fieldwork took place 7th - 19th June 2012 and incorporated 546 online interviews with National Landlords Association members.

For press enquiries please contact:

Lynda Hardy Maskell, Greenfields Communications lynda@greenfieldscommunications.com

Tel: +44 (0)7979 646020

About BDRC Continental

BDRC Continental is the UK’s largest independent market research agency. Established in 1991, the company has built an unrivalled reputation as a full service consultancy with specialist expertise across a number of sectors including business to business, financial services, hotels, meetings & hospitality, media & advertising, internet & telecoms, Government & not for profit, culture & leisure and tourism, travel & transport.

BDRC Continental is staffed by highly experienced researchers with great reputations in their individual fields as well as in the market research industry. The company is renowned for its consultative approach and ability to add value to clients’ businesses by bringing insights from multiple markets to the research. This cross-disciplinary approach enables BDRC Continental to provide intelligence that is informed by a deep understanding of the client’s issues and the wider market context. As well as undertaking bespoke research for a wide variety of clients, the company conducts a number of syndicated studies and has developed proprietary techniques including Tracktion (the award winning customer experience methodology), Grapevine, Service Intensity, the Business Opinion Omnibus, SME Finance Monitor and ZMET Visionary Thinking.