Landlords’ confidence in the buy-to-let sector has collapsed, according to the National Landlords Association (NLA).
Confidence in landlords’ business expectations has tumbled to just 29% - the lowest level since the NLA’s survey began in Q4 2006.
Confidence levels dropped sharply in the second half of 2015 in response to George Osborne’s changes to landlord taxation, but had until now remained above 35%.
This represents a marked shift in confidence since the government announced its proposal to scrap section 21 eviction notice.
Regionally, confidence is highest in the East Midlands and in Yorkshire and the Humber - both 34%.
Confidence is lowest in the North East (18%) and central London (19%).
Richard Lambert, CEO of the NLA, commented: “With the amount of change that has occurred over the last four years and now the proposal to abolish no-fault evictions without any certainty that the courts will be able to cope with the increase in cases this will create, it’s no wonder that landlords are pessimistic about their future.
“Landlords need to be confident in their own businesses for the private rented sector to function properly. Given that it’s expected to compensate for the lack of social housing, it is vital that this confidence is restored.”
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