Hard times for Britain’s
smallest private landlords
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.
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.”
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.
enquiries please contact:
Lynda Hardy Maskell, Greenfields Communications
Tel: +44 (0)7979 646020
About BDRC Continental
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.
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.