Looking at the private rented sector: views from landlords and tenants

 

A new survey is providing insight into the private rented sector. It sheds light on landlord and tenant relationships and the impact of legislative changes and government support on the sector.

The private rented sector sentiment survey by deposit protection service mydeposits and deposit replacement membership Ome illustrates a well-rounded view of the private rented sector. The survey received over 14,200 responses from landlords, tenants and agents.

The survey asked about relationships between tenants and landlords, industry challenges and the impact of COVID-19, new regulation and government support. Ome and mydeposits hope the survey results provide insights into common themes, trends and potential issues, showing ways the sector can improve.

Relationships between landlords and tenants

The relationship between landlords and tenants is often illustrated as frosty. However, this survey reveals a much more positive picture. In the survey, tenants rated their relationship with their landlords 7.4 out of 10 on average.

Additionally, landlords and agents also feel positive about their relationship with their tenants. Interestingly, 30% rated the relationship a 9 out of 10, while 29% rated it 10 out of 10. More than 88% chose a 7 or above.

Matthew Hooker, co-founder of Ome, says: “The results of the survey have highlighted the strengths of market and reinforces that the vast majority of tenant-landlord relationships remain positive.”

While rent arrears has been a concern, the majority of tenants have been paying full rent as normal throughout the COVID-19 pandemic. And an overwhelming majority of landlords and tenants have been working together throughout the crisis.

In the survey, 95% of tenants said they are not in rent arrears due to the pandemic. Of those struggling, 58% said their landlord had been accommodating. And 31% said their landlords offered reduced rent or a rent holiday.

The impact of legislation and regulation changes

The survey also asked landlords to comment on the worst things they faced in the private rented sector. The top two responses were legislation and regulation with about 24% of the respondents and non-paying tenants with approximately 14%.

Landlords also shared the most common challenges in the private rented sector. About 65% of landlords stated they feel the industry has changed for the worst. And this is predominately due to the increase in legislation, regulation and tax.

Despite this, 79% of landlords said they believe they would still be a landlord in five years’ time. This shows that being a buy-to-let landlord may be perceived as more onerous with recent legislative and tax changes. However, many still consider it a profitable and worthwhile endeavour.

Suzy Hershman, head of dispute resolution at mydeposits, explains: “In spite of challenges faced including legislation, rent arrears, and evicting tenants, it is evident that the majority of landlords want to remain in the sector because it provides a good source of income and an investment for retirement, making it a worthwhile endeavour.

“From a tenant’s perspective, the cost of renting is a key factor for those with a negative outlook of the sector. It could be suggested that the high costs and affordability issues felt by tenants manifest as rent arrears for agents and landlords making the problem cyclical. However, renting is also providing a solution to those who cannot afford to buy whilst offering flexibility.”

Government support for the private rented sector

Throughout COVID-19 and successive lockdowns, there have been recessions and redundancies, leading to an increased need for government support. Financial support, such as the furlough scheme and self-employment scheme, have been a lifeline for some.

In the property industry, many have voiced their concerns that there should be more help for tenants in rent arrears. Over half of tenants revealed they either felt not very supported or not supported at all by the government. Additionally, 90% of landlords believe the private rented sector is not supported by the government.

Matthew Hooker concludes: “As we emerge from the pandemic and the Government gets back on track with making further changes to the landscape of the private rented sector, our sentiment surveys will provide valuable insight into the views of landlords, tenants and agents and what changes could have a positive impact on reducing the challenges faced by all parties.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

rent

Looking at the private rented sector: views from landlords and tenants

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.