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Landlord confidence high as tenants still struggle to buy homes

  • 18/11/2013
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Landlord confidence high as tenants still struggle to buy homes
Only 27% of tenants have plans to buy a home despite the arrival of the Help to Buy mortgage guarantee scheme, research has found.

The report conducted by BDRC Continental and property consultancy Allsop found a split between those currently in the rental sector over future home ownership.

While 27% of tenants said they planned to buy a home in the near future,  39% said they wanted to continue renting properties. The report said this figure could be due to renters still being unable to raise a suitable deposit, even with government-backed Help to Buy products now available.

This has sent confidence among landlords to its highest level since the financial crisis with more than two-thirds (68%) anticipating ‘good or very good’ business in the next few months, the highest proportion since the third quarter of 2007.

However, tenants reported communication from landlords was poor and nearly half (45%) were fearful of being kicked out of their rented home at short notice with little they can do.

More than 1,000 landlords took part in the survey and 23% said they planned to increase their rental business in the next few months compared to 7% looking to exit the sector. The vast majority of landlords said they felt property was still the best way to invest their cash.

Paul Winstanley, partner at Allsop, said: “Increasing property prices combined with strong and, in many regions, rising rents are solidifying landlords’ commitment to the private rented sector, encouraging them to expand rather than contract their rental portfolios.

“For tenants this means a commitment to hold their properties for the long term, which, despite tenants’ fears on the contrary, is likely to signify greater security and longer tenancies.”

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