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Landlord confidence has dipped to lowest point since 2006

Landlord confidence in their own lettings business has reached a record low, with just 29% saying their expectations for the next month is good or very good.

The data from the National Landlords Association (NLA) shows that this is the lowest level since its landlord survey began in the fourth quarter of 2006.

It points out that confidence levels dropped significantly in the second half of 2015 in response to George Osborne’s changes to landlord taxation, but had until now remained above 35%.

It also points out that this represents a marked shift in confidence since the Government announced its proposal to abolish section 21 no-fault evictions.

Regionally, confidence is highest in the East Midlands and in Yorkshire and the Humber, both at 34%, and lowest in the North East at 18% and central London at 19%.

‘With the amount of change that has occurred over the last four years and now the proposal to abolish no-fault evictions without any certainty that the courts will be able to cope with the increase in cases this will create, it’s no wonder that landlords are pessimistic about their future,’ said Richard Lambert, NLA chief executive officer.

‘Landlords need to be confident in their own businesses for the private rented sector to function properly. Given that it’s expected to compensate for the lack of social housing, it is vital that this confidence is restored,’ he added.

Landlord Rosy Hopkins is one landlord considering leaving the market. ‘We are currently experiencing difficulties with a hostile tenant, who regularly calls us at silly hours, swears at us, and generally swears at and is abusive towards other tenants. We are again issuing a Section 21 to evict him,’ she said.

‘Without recourse to Section 21 we would undoubtedly have lost several decent tenants and would be stuck. I appreciate they are in contravention of their leases, but also understand how difficult it could be to prove that,’ she explained.

‘We are actively considering selling our properties, which is no doubt what the government is trying to achieve. After the new tax burdens, which may well cripple us, and steal our hard-earned retirement income, and all the new/threatened legislation, we have just about had enough,’ she added.

Source: Property Wire

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Landlord Confidence In Buy To Let Investments Lagging

Landlord confidence in the buy to let investment sector has still not been fully restored according to research from BM Solutions.

Landlord confidence levels have remained largely stable on a quarterly basis in areas that include rental yields, capital gains and their own lettings business.

However, the most significant change in landlord confidence was surrounding the short term prospects for UK financial markets. An 11 per cent drop in confidence was evident in the survey.

Landlords were also of the opinion that tenant demand is on the decline. A mere three UK regions, comprising of Scotland, the East of England and outer London, showed an increase in demand in comparison to the fourth quarter of 2017. Across the other nine UK regions, demand from tenants was lower in comparison to the end of 2017.

During the first quarter of 2018, rental yields dropped slightly to 5.8 per cent. This is down from 5.9 per cent in quarter four.

The highest rental yields were generated in the North West at 6.7 per cent. These were closely followed by the West Midlands at 6.6 per cent and the East Midlands at 6.2 per cent.

BM Solutions head Phil Rickards commented on the findings: ‘After the new underwriting standards came in at the back end of last year, it’s encouraging to see landlords starting 2018 on a more optimistic note particularly around their own business and rental yields. While overall confidence in the UK’s financial markets is 11 per cent lower than a year ago and we’re still working through a period of landmark changes in the industry, there are clear signs of good health, as more than eight out of 10 landlords are telling us they are making a good profit from their business.’

BM Solutions quarterly research is carried out with market researcher BDRC. It is based upon 1,043 interviews with landlords.

Source: Residential Landlord