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Landlords’ concerns and positives outlined in new survey
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Interesting new research has revealed that Brexit is no longer the top concern for British landlords, with taxation and economic uncertainty now more pressing worries.
Other features causing investors sleepless nights include regulation and increased competition, according to new data released by Direct Line for Business.
Landlord Concerns
Taxation and economic uncertainty came out on top in the list of top landlord worries, both accounting for 41% of responses.
Investors concerned about unwittingly breaking legislation and ending up on the wrong side of the law made up 40%. In addition, landlords concerned about the rate of inflation accounted for the same percentage.
The top 5 concerns highlighted by landlords in the report were:
Factor | % Negative impact |
Taxation | 41 % |
Economic uncertainty | 41 % |
Inflation | 40 % |
Regulation | 40 % |
Competition bringing rental process down | 38 % |
Positives
On the other hand, landlords were found to be most positive about the prospect of increasing house prices. In addition, demand for rental accommodation, interest rates and surprisingly, the triggering of article 50 were also found to be positive for landlords.
The table below indicates the top 5 short-term positives for landlords:
Factor | % Positive impact |
House prices | 31 % |
Interest rates | 29 % |
Domestic demand for rental properties | 28 % |
Brexit / Triggering Article 50 | 28 % |
Foreign demand for UK rental properties | 27 % |
Christina Dimitrov, Business Manager at Direct Line for Business, observed: ‘It’s great to see landlord’s being resilient towards the ever-changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand.’
‘The continued low interest rate environment can only benefit landlords and tenants. However, experts are predicting an interest rate rise in the future and the Prudential Regulation Authority’s tougher underwriting rules for buy-to-let mortgage lenders may bring some challenges for landlords wanting to expand their portfolios.’[1]
[1] http://www.propertyreporter.co.uk/landlords/landlords-reveal-their-biggest-fears-in-new-survey.html