A recent report from mortgage lender OSB group highlights the concern from part-time landlords about the future, reporting that 26% are considering leaving the rented sector.
The report also finds that professional landlords (whose only income is through property and not from any other means) are much more positive about the future. 92% are confident for what’s to come.
With that in mind, here’s why now is the best time to become a professional landlord.
Why become a professional landlord?
The sentiment is high among professional landlords, with as many as 80% increasing or having a plan to increase their portfolio. This is compared to only 40% of part-time landlords having these ambitions.
It also looks like the sector is beginning to turn to professionalism, with 64% of professional landlords agreeing.
More positive results were found in the report regarding the driving factors behind professional landlords. 34% are looking to improve the lives of tenants, and 72% believe being a professional landlord gives you more time to consider the tenant experience.
More motivations for becoming a professional landlord were found to be:
- A higher earning potential (39%)
- Building their own company (33%)
- Providing housing for those who need it most (29%)
Professional landlords had more ambitions in the form of becoming a LLC (76%), hiring more staff (73%) and employing external consultants (72%). These numbers show us the high levels of confidence for the future from professional landlords.
Andy Genge, head of our Lang Town & Country Waterside team, says:
“Private landlords should be talking a leaf from the book of professional landlords being confident about the future, and either keeping hold of their rental properties or adding to their portfolios.”
Rising rents
One of the main causes of concern towards the rented sector is the increase in rent costs.
Richard Rabin, Lang Town & Country Lettings Director, says: “Rents have increased dramatically in the last three years. For example, a standard three-bedroom terrace house attracting a rental of £850 just over three years ago is now attracting rents of £1,100.”
The ONS reports a growth of 3.4% in private rental prices from August 2021 to August 2022. That is the highest 12-month growth rate since November 2008.
This is backed up by Rightmove, who highlight that outside of London, rents have hit a new record at the national average of £1,162 pcm – an increase of 3.2% in the third quarter alone in 2022.
What about the Renters Reform Bill?
Back in 2019, the Ministry of Housing, Communities and Local Government proposed the following to help the rented sector:
- End ‘no-fault’ evictions by repealing section 21 of the Housing Act 1988
- Extend the grounds for possession under section 8
- Remove landlords’ ability to grand new assured shorthold tenancies (ASTs)
- Improve the processing of repossession orders
The bill has faced difficulties due the COVID-19 pandemic, but is hoped to be enforced in 2023. Lang Town & Country will be fully compliant and ahead of the game, making us a great choice of agent for your rented properties.
How Lang Town & Country can help
We’re one of the most trusted and respected letting agents in Plymouth, with local knowledge and unrivaled service.
We understand that your most prized possession – your property – is of utmost importance, and pride ourselves on our reliability and responsibility.
We guide both tenants and landlords through the process, and are here to help with any aspect of letting a property.