Renters Reform Bill isn’t deterring buy-to-let investment
A leading lettings agency insists that the Renters Reform Bill isn’t dissuading buy-to-let investors
According to the Leaders Romans Group (LRG), their recent survey reveals that 6% of landlords plan to either maintain or expand their portfolios in the next year.
LRG surveyed 630 landlords in March to gauge the Bill’s influence on their investment decisions.
A significant 55% stated that the Bill wouldn’t alter their property investment strategy. Many emphasized their long-term approach to investment, indicating they wouldn’t hastily exit the private rented sector.
The survey also explored landlords' main concerns regarding the Bill. Surprisingly, it wasn’t the potential removal of Section 21 that troubled them most, but rather tenants’ right to request pets.
Regarding the proposed pet-related change, 56% of landlords viewed it negatively, while 54% felt the same about the abolition of Section 21.
Despite these apprehensions, some landlords found positives in the proposed legislation: 63% welcomed easier repossession in case of tenant fault, and 52% supported the introduction of an ombudsman.
Rather than being primarily worried about impending legislation, landlords' concerns revolved more around financial aspects such as high mortgage rates, bureaucratic costs, increased taxes, overheads like service charges and maintenance, and VAT on contractors’ fees.
Allison Thompson, National Lettings Managing Director at Leaders Romans Group, remarked: “Despite significant changes in the private rented sector, both politically and financially, the supposed 'landlord exodus' is being exaggerated – as this research demonstrates.
“While there are indeed notable issues with the Renters Reform Bill, LRG and others have actively participated in shaping this legislation to ensure fairness for landlords – who are, after all, vital to the property industry and relied upon by the government to provide homes for those most in need.
“As local authority housing waiting lists continue to grow, I trust that the government will acknowledge landlords’ crucial role and consider their perspectives as the legislation progresses through Parliament.”
This survey by Leaders Romans adds to several others downplaying the Bill's impact. The Bill is set for its Third Reading in the House of Commons and will then proceed to the House of Lords.
