A survey from Aldermore showed that 63 per cent of landlords had this feeling, while 59 per cent wanted to downsize due to economic challenges such as high interest rates, falling house prices and the rising cost of living.
This is despite 69 per cent of respondents believing that, if private landlords exited the sector, the quality of properties available would suffer. Similarly, 71 per cent said the private rented sector (PRS) was needed to meet the UK’s housing demand.
This was evident in 73 per cent of respondents saying there was an increase in tenant demand for their property last year. Some 64 per cent of landlords said they wanted to expand their portfolio, but felt unable to due to market conditions.
Supporting the local economy
Aldermore’s research also suggested the presence of landlords provided a boom to local businesses.
Some 79 per cent of landlords chose tradespeople based near their rental properties when hiring someone to carry out work and spent an average of £6,003 per year on local services.
More than half – 52 per cent – looked locally for electricians, and 50 per cent did the same for plumbers. Further, 34 per cent of respondents chose local services when seeking handymen.
This extended beyond repairs and maintenance, as 15 per cent of landlords relied on local services for interior design and 14 per cent for architects.
When asked why they sought local services and businesses, 34 per cent said it was down to trust.
A similar proportion – 32 per cent – said local tradespeople had more knowledge about the local area and were able to give better advice.
Jon Cooper, head of mortgages at Aldermore, said: “Amid a backdrop of ongoing market challenges – from high interest rates through to regulation changes – some landlords are considering downsizing their portfolios. However, there will be plenty of larger-scale, professional landlords that will instead look to purchase more buy-to-let (BTL) properties.
“This should, over time, provide useful ballast to the private rental sector.”
He added: “Landlords remain absolutely vital to addressing the UK’s housing demand. Our data show they’re generous contributors to their local economies as well. Whilst they sometimes get bad press, there are so many good landlords out there making a really positive difference.”
