Majority of UK landlords appear to be optimistic about the future
Various research has shown that despite just under half of landlords taking part in research activity acknowledged that market conditions have become more challenging in the last twelve months, more than 50 percent said they still feel optimistic about the future of the rental market.
The UK needs more landlords
As the outlook for new investors entering the market appears uncertain, almost two-thirds of landlords say that if market conditions continue on the same path, they will have no choice but to increase rents by at least 10% in the next 12 months.
Tenants are having to compete for rental homes as they fly off the market as soon as they are listed. While house-saving becomes a lengthier process amid a cost-of-living crisis, the rental market is now grappling with ramped-up demand from those looking to rent for the time being instead.
The simple fact remains that the UK housing market, like every other market, is driven by the laws of supply and demand and it is no secret that there is a shortage of housing to rent in the UK.
Landlords are conflicted with upping costs in this difficult economic climate, with landlords worried their tenants may not be able to afford their rent in the near future due to the rising cost of living pushing up demand for rental homes. The only way to diffuse this pressure is for the rental stock to increase, allowing the balance of supply and demand to somewhat even out.
Energy efficiency on the radar
Energy efficiency appears to be at the forefront of UK landlords minds. In a bid to create more sustainable portfolios that meet the government’s EPC regulations.
In an attempt to stay on top of changing legislation, it is estimated that more than half are planning on carrying out property improvements in the next 12 months to upgrade the energy efficiency of their portfolio.
With the cost-of-living crisis already impacting tenants, homeowners and landlords alike, the outlook for 2023 seems tricky to predict ; however, as we head into 2023, landlords should work closely with their brokers and agents to assess their portfolios and identify opportunities that lie ahead.”
Thinking about becoming a landlord? Contact us for a non obligation chat