Research reveals landlords faring well
London: 2 June 2011 – It’s summertime and the living may not be easy, but it is certainly looking better if you’re a private landlord.
That is the key finding from the latest quarterly Landlords Panel research from BDRC Continental in partnership with the
National Landlords Association. The report shows that landlords tend to be happy in their profession - 78% feel positive about
being a landlord - although that does not mean it is an easy occupation. 62% believe it has become harder recently, and only 8%
agree that landlords are respected by the general public.
However, BDRC Continental’s research shows that landlords have fared well over the last three months. Almost half (49%) of
the respondents say that demand for rental property from tenants has increased. They are also optimistic about the future, with
49% expecting demand to continue increasing and just 6% predicting a fall. What’s more there are signs that rental property
continues to be a popular investment, with a larger proportion of landlords expanding their property portfolio as opposed to
reducing it. Reflecting a cautious air of optimism, 10% have acquired more properties in the last three months, while 16% plan
to do so in the next three months.
Rising rents are also good news for landlords: 43% of those surveyed report a rise in rents in areas where they let properties.
Across the board, rents have risen by 4.7% and one in five respondents say they are making enough money to live on their rental
income. A further 31% actually make enough profit to save some of their rental income. A further 10% are breaking even and only
5% are making a loss. However, just over half (52%) have experienced rent arrears during the last 12 months.
Mark Long, Business Propositions Director for BDRC Continental believes results from the Landlords Panel indicate a
continuing appetite for professional advice. “As with other occupations, there are important regulations and responsibilities that
go with being a landlord. These include major features such as the Tenancy Deposit Schemes and the Client Money Protection
Scheme, that safeguard tenant’s deposits. Our research showed that almost two thirds of landlords taking part in the research
are unaware or unsure of what the scheme is, although those using a letting agent for full management services are far more
tuned into this significant initiative.”
The Landlords Panel research highlighted the importance landlords place on advice in selecting a Buy To Let (BTL) mortgage.
While low interest rates and lending criteria are key factors, advice from a third party is a major element in the choice of lender for
42% of respondents. 59% also agreed that they were open to the idea of BTL lenders providing broader advice to them as
landlords.
Frustrations in the life of landlords include rent arrears, void periods, poor public perception and the lack of a collaborative
approach to providing housing by local authorities.
Ends
Note to editors
1. The National Landlords Association estimates that there are 1.2m private landlords in
the UK.
2. Under Financial Service Authority rules, client’s money (such as rental deposits) can only be used for the purpose for which it
was provided and firms are required to keep client money in separate accounts from the firm's own money. The rule is intended
to safeguard client money in the event of the firm’s insolvency.
3. Research undertaken 29th March – 18th April 2011. 578 online interviews with National Landlords Association (NLA)
members
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Lynda Hardy Maskell, lhardymaskell@greenfieldscommunications.com
