Landlords’ confidence took a hammering in the second quarter of the year, as they were hit by the evictions ban, Government regulations and the Covid downturn.

The National Residential Landlords Association’s (NRLA) confidence index reveals that those with portfolios in London and Wales are feeling least confident about their future compared to 12 months ago, with those in the North East and North West most bullish.

But nearly all the regions improved their score from the first quarter – just as lockdown was starting. The only significant drop was seen in the South West, which the NRLA believes could just be seeing a slight lag; its previous fall wasn’t as great as many others, and it’s also where rents have seen the largest rise.

Good tenants

A fear of losing good tenants, along with local market conditions and the general state of the economy have all impacted on their decision-making, with a slight fall in the number either buying (10%) or selling (15%) in the last 12 months.

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It also makes landlords believe they can’t raise rents; only 18% have done so in the last 12 months while 72% have frozen them.

But they’re certainly not suffering from a drop in demand as the survey finds that more than 60% of vacant properties are taken up within a four-week period.

Looking to the future, fewer landlords want to sell and only slightly more are planning to buy properties.

The NRLA says the gap between the two has fallen markedly since last summer and explains: “This could purely be a Covid-effect. It could also indicate that the pain inflicted by tax changes and new regulations, plus future changes in the pipeline, are now more fully baked into landlords’ plans.” 

Read the full confidence index report.

8 COMMENTS

  1. As a landlord, I feel that Government has no sympathy towards us.
    Tenants are getting all the support and privilege by receiving all sorts of financial benefits and Tenants are collecting Rent and NOT PAYING THE LANDLORD, on top of that Tenants are working and getting benefits.
    On the other hand LANDLORDs are out of pocket by paying Mortgage out of their money, no tax rebate, no rent, no support from the Government and if LANDLORD don’t pay Mortgage or moneys borrowed against the property are at RISK OF LOSING THE PROPERTY.
    What a shambles of the property market.

    We as landlord feels there is no listening or any support.

    Tenants are benefiting and protected by the Government from all angles.

    I am worried sick and as a heart patient, there is no one who could help.

    My tenant has not paid rent or bills share for last four months he has job and receiving universal credit in which he is receiving Rent and he is no paying me a penny and on top I cant ask him to leave.
    He is having friends for dinner, celebrating birthdays.
    FLYING TO ROMANIA AND GETTING PRIVATE TREATMENT AND OPERATION.

    BUT

    No there is NO MONEY TO PAY RENT.

    Please is there No justice for us Landlords.

    The pressure is killing me.

    God what is happening to this country.

    Are there laws only to protect Tenants but what about Landlord.

    No Rent
    No Mortgage payment
    Property being Repossessed.
    Where do I seek help.
    I don’t know, this pressure is killing me as a LANDLORD nothing is in my control.

    I am going out of my mind.
    I cant relax
    I cant sleep
    I cant eat.

    What next should I hang myself and let Tenants take my property.

    One sad and dishearten demoralised Landlord.

  2. At the risk of being regarded as a tin-foil hat conspiracy theorist, there is absolutely no doubt in my mind that there has been a gradual, but calculating agenda to bring down the landlord over the years. We have literally had the book thrown at us and anyone who doesn’t see that, needs to open their eyes.

    From the getgo, the tenant has always had the power. Even back in the 80’s and 90’s, a tenant could just stop paying rent , trash your place and it would take the landlord months and months to get the tenant out. And for the more streetwise tenant, if they were particularly savvy, they would drip feed the rent, knowing that some sympathetic judge would take pity on them.

    As a result, the tenant would continue their neglect of the property and before you know it, you’re thousands of pounds out of pocket and left holding your tail between your legs.

    Meanwhile, your tenant is long gone and inflicting financial, emotional and psychological havoc on some other poor landlord.

    But the agenda to screw landlords has really taken fold over the last few years. So first we are told that we can’t offset mortgage interest anymore. What the? Where did that little piece of lovely legislation come from? Think about it, for years, you’re allowed to write off thousands of pounds off interest payments off your annual tax bill, only to be told that will stop! Hmmm. Interesting.

    Then came a raft of required documentation that the landlord had to start serving the tenant: Gas safety certificates, EPC’s, How to rent guides, right to rent checks, deposit protection certificates, electrical certificates and trust me, this is only the start. By the time they’re finished, there will be zero profit for the landlord. Just watch this space.

    Now you have to start obtaining “wet signatures” from your tenants to “prove” the email address they are supplying you is actually theirs! Yes, I am not making this up! And it still doesn’t stop there! GDPR documents? Yes please! That’s the latest ridiculous piece of paper that has to be served.

    But this is all part of the agenda my friends. They know that landlords are not going to keep up with all this legislation, especially to the required level.

    So let’s move on to today, because without doubt, if landlords can survive the latest onslaught of legislation that 2020 has inflicted upon us, well then all I can say, is have some ready cash at your disposal, because you are going to need it to stop getting reposessed on your properties!

    So get this and again, I am not making this up! A tenant can decide not to pay rent and also wreck your property and just continue living there with no consequences.

    The courts jammed their system for months on end and we are now being told that you need to serve 6 months notice on a tenant! Yes you heard right, 6 months! And trust me, if you “miraculously” do evict a tenant(unlikely event I’m afraid), it will be alot longer than 6 months before you see the back of them.

    But here’s the thing. You won’t get them out, because how many landlords are armed with the slew of correct paperwork? How many have ensured that they have the minimum energy rating on their property? Well, if you don’t, forget getting your tenant out.

    The recent system has been specifically created to “trip up” landlords and to ensure they fail.

    The creme de la creme came recently, when they announced the intention to ban Section 21 notices and trust me, that’s another done deal.

    So let me get this right. I can’t serve notice on a tenant?? Oh no wait, you can serve a Section 8. So if I decide I want to move back in to MY property because I can’t afford to rent it out anymore(I wonder why that is hmmm), then I can’t.
    Get this. It’s not a good enough reason ha ha! But it’s MY house. It’s MY flat. Nope. Tenant’s rights mate.

    Have you wondered why there have been a barrage of anti landlord stories in the media and on tv over the years? Strange co-incidence(wink wink)?

    Oh I forgot. Licensing are coming for you soon at a council near you! That’s also a done deal. So in addition to all the draconian legislation imposed upon us poor landlords, we will now have to pay pension plans to the councils for the rest of our lives and have them breathing down our necks and lining their pockets.

    And if this comment hasn’t sent you to the depths of despair, then maybe the fact that Capital gains tax is increasing from 28% to 40-45%. So I’m afraid, not only do they want a large chunk of your income, they want a massive slice of your hard earned capital aswell. Sorry about that. Hope you understand.

    The big question is this. Why? Why is there this agenda to bring down the landlord? The only thing I can think of is jealousy. People don’t like success, especially financial success, especially other people’s financial success.

    Take my advice. Be very, very careful.

  3. All of you are correct .
    There must be a collective lawsuit we can take against the government .
    The injustice of having to put up with tenants who do not pay the rent without the ability to evict is unjust .
    Is the government going to compensate landlords like us who had a pre Covid court possession against a tenant Owing £8000 in arrears, and now the bailiff cannot evict because of the new ruling …

  4. Private landlords provide a home for a vast number of people in need of housing. Why on earth is the government and the law biting the hand that feeds?

    The whole system educated tenants as well as landlords to get accustomed to eviction. Of course not all are the same. But here is my experience as small private landlord. About 50% of my tenants on Universal Credit I had in the past 20 years, use a pattern
    1. They are too lazy to clean and don’t care about their home. They move into a nice and clean property, trash it, get evicted and the council organises (to avoid homelessness) a nice new clean and shiny home which they trash again.
    2. They get additional cash. They stop paying rent after a few months and pocket the rent money given to them by UC. The landlord has no other option but to evict. The process is taking so long, even without Covid, that tenants pocket thousands of Pounds.

    I strongly believe, those tenants bank on getting evicted, as they get help from the authorities again and again. Landlords quickly serve notices and evict, they have no other means to protect their business.

    What makes me so angry is, that it’s okay if tenants trash a landlord’s property. It’s okay they don’t pay the rent, which is a bill for accommodation similar to a hotel, isn’t it? But, it’s a criminal offence when someone trashes their hotel room or doesn’t pay the hotel bill. It’s a criminal offence if someone steals a little chocolate bar in a shop. And what about rented accommodation? Tenants don’t get prosecuted, on the contrary, they are rewarded with new home to go to! They don’t even bother to turn up in court and whatever the judge orders, the landlord never sees the money for many months of unpaid rent and costs for repair of damages.

    Letting a property is a business, even if we let one little flat, we pay our taxes and comply to all sorts of regulations that get more and more. In any other business is it’s a criminal offence if a person causes material or financial damage to an asset. And landlords…?

    BTW, I’m in the same situation as Jabeen Khan. Jabeen, chin up, don’t let anyone destroy your life.

  5. Yep, very worrying and a real dilemma. We have good tenants at the moment but may sell as and when the houses become empty. Im not even sure the courts try to recover the unpaid rent or if the DWP sue the tenant for fraud (collecting housing benefit/universal credit) and not using the money to pay the rent and in all likely-hood are awarded/continue to to be in receipt of universal credit when they finally do leave your property and move into their next victims property. Fraud, pure and simple. Im proud to be a good caring, legal landlord but I am planning my exit.

  6. In my opinion this is also related to council housing stocks. Previously if a tenant was faced with eviction the council had duty to rehouse them in a council accommodation or hotel at considerable cost. By stopping evictions the government have simply passed the burden onto the private sector landlords.

  7. Everything that has been stated is so true.

    Govt wants rid of LL.
    There is no logic for this.
    Pure perceived political expediency.

    Being an AST LL is a very risky business proposition.

    LL need to be aware of this and consider their position.

    Personally I intend not to be an AST LL and have already stopped.

    Now intending to sell up ASAP.

    Not prepared to be effectively a social housing LL.

    I totally respect any LL intending to stay in the AST market.
    You are a lot braver than me!!

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