Despite headwinds, landlords are optimistic and committed
In the face of a volatile housing market, landlords are actively investing in the private rented sector (PRS) to support both the industry’s growth and their tenants’ needs, according to research from specialist lender OSB Group.
The second instalment of the lender’s Landlord Leaders Survey reveals that nearly seven out of 10 landlords, or 69%, have expanded or plan to expand their property portfolio, a figure that rises to 77% among professional landlords.
OSB pointed out that at a time when 42% of landlords are optimistic about their prospects, with 20% of professional landlords feeling highly optimistic, these investments highlight a commitment to the sector’s future.
The survey also indicates a trend towards the professionalisation of the PRS, with 65% of landlords considering or having already shifted to limited company structures. Additionally, two thirds, or 66%, are investing to navigate legislative changes effectively, 58% intend to hire more staff, and 68% are dedicating more effort to enhance tenant experiences.
“Landlords play a critical role in society, and this research clearly demonstrates that they are optimistic and committed to the future of the sector,” commented Jon Hall (pictured), group managing director for mortgages and savings at the OSB Group. “The actions landlords are taking, such as future financial planning, investing in the growth of their businesses, and building better tenant relationships, are a clear sign of their drive to improve the PRS for the long-term despite the many headwinds. We hope to see this continue over the next 12 months and longer.”
The research also identifies the main motivations for being a landlord as: the potential for earnings, the opportunity to pass wealth to future generations, investment in a tangible asset, and making a positive impact on tenants’ lives.
Further findings show that 75% of landlords are engaging or plan to engage more closely with tenants to better meet their needs, with a quarter aiming to make a lasting positive impact on tenants’ lives.
“This latest research reinforces OSB Group’s view that the journey to professionalisation is one that many landlords are committed to,” Hall said. “We will continue to support our landlord and broker clients and the Landlord Leaders Community members to ensure this optimism and action is replicated and recognised.”
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