Most landlords are optimistic about the future despite tougher market conditions.
Research carried out by Aldermore found although nearly half (49%) said it was tougher than this time last year, 54% said they were optimistic about the future and 66% said they believed being a landlord was a good way to make money.
The bank’s survey of 500 UK landlords polled between November 23 and December 7 last year, also found 48% had been unable to expand their property portfolio and looking ahead, 42% will even consider downsizing, as a result, if market conditions continue as they are.
In a bid to maximise returns in the current environment, 42% said if they were to look at expanding their portfolio, they’d purchase as a limited company.
As the outlook for landlords appears uncertain, nearly two thirds said if market conditions continue as they are, they would have to put up rents by at least 10% in the next 12 months – adding to the pressures faced by tenants amid soaring energy prices and rising living costs.
Yet the survey suggests landlords are conflicted about passing on costs in an already difficult climate, with 64% of those polled worried their tenants may not be able to pay their rent in the near future because of the rising cost-of-living.
The survey also considered energy efficiency issues as landlords look to make their portfolios more sustainable and meet the government’s likely EPC regulations.
Nearly six in 10 landlords (58%) said the sustainability and energy efficiency of their property portfolio is a priority for them and 53% plan to carry out improvements in the next 12 months to improve their properties’ energy efficiency.
Sheldon Bosley Knight business development manager Nik Kyriacou said: “These are undoubtedly tough times for landlords with a cost of living crisis and incoming regulations.
“However, there are reasons to be optimistic and it’s good to see surveys such as this reflecting some of the issues alongside the positives of being a landlord.
“With inflation likely to fall this year according to the Office of Budget Responsibility, mortgage rates may ease and this will give some comfort to landlords struggling with mortgage payments.
“One of the positives is there is plenty of demand in the rental sector and we at Sheldon Bosley Knight have some great investment properties available.
“If you are a landlord and are looking to add to your existing investments, please call one of our offices today.”