Landlord sentiment hits rock bottom 

Landlord sentiment hits rock bottom 


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A sentiment survey being published next week by a PropTech supplier suggests landlords are deeply pessimistic about the future of the private rental sector.

The study – involving some 1,500 landlords, letting agents and tenants – found that sentiment across the private rental sector was the worst ever, as a result of “a growing sense of unease and uncertainty about the future of the rental market.”

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More than half of letting agents – 54% – now feel pessimistic about the PRS, while 75% of landlords are feeling pessimistic – and half of those were “very pessimistic”. 

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William Reeve, chief executive of the firm that commissioned the survey, Goodlord, says: “There’s a new Government, a major piece of rental sector reform is soon to hit the statute books, and we are experiencing the most acute housing crisis in a generation. As the initial data shows, this combination of factors is engendering wide-ranging pessimism and concern across the industry, and the imbalance between supply and demand looks set to get worse, not better.”

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The same survey looked at probable changes to Section 21 eviction powers and result show a hardening of sentiment. The number of agents who believe the legislation would have a negative impact on the sector has risen from 56% last year to 70% this year. 

Meanwhile this year’s survey reveals a lack of widespread support amongst tenants for mandating periodic tenancies. 

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A majority (58.5%) of renters indicate they would prefer a fixed-term, renewable tenancy agreement, and just a third (30%) favouring a rolling, open-ended agreement. 

Only 15% of tenants report feeling ‘trapped’ by a fixed-term tenancy, suggesting the perceived benefits of mandatory periodic tenancies may not align with tenants’ preferences.

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The figures released by Goodlord are only headlines from the firm’s full report, which is released on Thursday.

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