Anticipating Change in the Private Rental Sector
A recent survey has revealed that 70% of UK landlords anticipate further government-led change in the private rental and buy-to-let sectors during this year.

tenancy agreementThe research was commissioned by Foundation Home Loans and involved 791 participants. The results show that:

- 73% UK landlords believe that this is likely to mean the introduction of minim tenancy terms
- 73% envisage change within the HMO sector
- 72% think that individual licencing for all landlords and their properties will be introduced
- 38% anticipate a rental cap will be introduced (for private rental properties)

The online survey took place in January 2020. Landlords were asked how supportive they were of a rental cap:

- 77% landlords said they were not in favour
- 12% said they may be in favour
- 9% didn’t know what they thought of it
- 2% definitely supported it

What would landlords do if a rental cap was introduced? The answers to this question were very interesting:

- 35% landlords would immediately increase all rents to the maximum level allowed
- 33% would think about selling some of their properties
- 20% didn’t know what they would do, if anything
- 19% would consider leaving the private rental sector
- 10% would do nothing

The findings also showed a greater degree of landlord optimism compared with previous surveys. Those landlords feeling more positive were influenced by greater Brexit certainty and that the Conservative Party – traditionally a more ‘landlord-friendly’ party – won the election.

“With increasing demand for rental properties, landlords are right to feel optimistic about this year,” says Jason Dyer of JTM Homes. “Of course they need to comply with legislation – and this has increased in recent years. However opportunities exist within the private rental sector and we are keen to talk to anyone who wants to enter this market or expand their property portfolio in the north London market.”

Would you like to explore the opportunities of the north London rental market? Talk to the lettings team at JTM Homes. We're here to help.