Reverse anti-landlord policies, top agency tells gove...

A lettings agency says it’s vital that the government reconsiders the new laws and regulations seen as attacking landlords.

The Leaders Romans Group has conducted a survey amongst 271 landlords this month and claims that only seven per cent plan to exit the BTL market in the next year - although a further 12 per cent plan to reduce their portfolio.

However a strong majority - 71 per cent - plan to maintain their portfolio size and another 10 per cent say they will expand it.

Of the 51 landlords planning to sell, the most common factor which impacted on decision-making was policy change: increased regulations such as compliance and Smoke and CO detector requirements; also the imminent Renters Reform Bill and other emerging policies.

Others planning to sell blamed economic issues such as interest rates, energy costs and a lack of disposable income, or personal circumstances unrelated to income.

Allison Thompson, managing director of lettings at LRG, comments: “The private rented sector is vital to our economy and without it would see a huge increase in homelessness. So it is very good news that 81 per cent of our landlords still see residential property as the best form of investment and plan to maintain or increase their portfolios over the next year.

“A property investment is for the long term. It is one which will see many economic cycles and changes of Government, but despite interest rates rising and falling and regulations coming and going, a BTL investment will invariably deliver a good financial return.

“However, the government must realise that the housing crisis – specifically the under-supply of rental units - cannot be resolved by penalising the already stretched private rented sector. It is vital that the government re-considers the components of the proposed legislation which are putting off some landlords.

“This includes the much-talked about proposals to require rented properties to have an EPC rating of C, and also proposals surrounding Section 21 and assured shorthold tenancies. It has been suggested that tenants might be permitted to serve notice of two just months at any point.

“This would create considerable uncertainty for landlords, which is unwelcome in an already challenging market. There has been a request to amend this, so that two months’ notice is only permissible when the tenant had been in the property for at least four months. This compromise would provide some further security for landlords, while allowing flexibility for tenants.”