Report finds that Landlord confidence endures with anticipation of EPC legislation

The latest BVA BDRC Landlord Panel research for Q4 2023 reveals a robust optimism among landlords, with improvements seen across various metrics compared to the previous year. This positive sentiment marks a continuation from Q3, following a period of negative scores.

Despite a slight dip in confidence regarding rental yields due to perceived lower tenant demand, stability is observed in landlords’ confidence in their lettings business. The survey indicates that 63% of landlords experienced increased tenant demand over the past three months, with the North West leading in tenant demand growth and the West Midlands seeing a significant decline.

The survey, conducted for Foundation Home Loans, suggests a cautious landlord community, with larger portfolio owners more likely to profit full-time from their properties. Single-property landlords exhibit less confidence in rental yields and the private rental sector overall.

Interestingly, landlords show less inclination to divest their properties, with planned divestment lower than figures from the previous year. Conversely, there is a rise in the number of landlords intending to acquire properties, with portfolio landlords being more likely to expand.

The survey also reflects landlords’ satisfaction with the government’s postponement of mandatory Energy Performance Certificate (EPC) ratings of C or above for private rental sector properties. However, the majority of landlords anticipate this legislation to be enacted eventually, indicating preparedness for potential property upgrades to meet greener standards.

Foundation Home Loans continues to address landlord needs through its range of buy-to-let products for both individual and portfolio landlords. Grant Hendry, Director of Sales at Foundation Home Loans, highlights a renewed sense of stability in the landlord community and anticipates landlords to meet affordability criteria and manage mortgage payment increases in changing rate environments.

Overall, while challenges persist, such as supply issues and mortgage costs, there is optimism and stability in the rental market, with landlords adapting to meet evolving regulations and market conditions.

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