In the midst of a fluctuating housing market, landlords are actively channelling investments into the private rented sector (PRS) to bolster both industry expansion and meet the evolving needs of their tenants, as indicated by research conducted by specialist lender OSB Group.
The second instalment of the Landlord Leaders Survey, conducted by OSB, discloses that an impressive 69% of landlords, nearly seven out of 10, have either expanded their property portfolios or have concrete plans to do so. This figure rises even higher to 77% among professional landlords.
Against the backdrop of a housing market where 42% of landlords express optimism about their future prospects, with 20% of professional landlords feeling highly optimistic, these strategic investments underscore a steadfast commitment to the long-term viability of the sector.
The survey also points towards a trend of professionalization within the PRS, with 65% of landlords either considering or having already shifted to limited company structures. Furthermore, 66% are strategically investing to navigate legislative changes effectively, 58% are gearing up to hire more staff, and 68% are dedicating additional efforts to enhance tenant experiences.
Jon Hall, Group Managing Director for Mortgages and Savings at OSB Group, commented, “Landlords play a critical role in society, and this research clearly demonstrates that they are optimistic and committed to the future of the sector. 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 delves into the main motivations driving individuals to become landlords, citing potential earnings, the opportunity to pass wealth to future generations, investment in a tangible asset, and the desire to make a positive impact on tenants’ lives.
Additional findings from the survey highlight that 75% of landlords are actively engaging or plan to engage more closely with tenants to better understand and meet their needs, with a quarter aiming to make a lasting positive impact on tenants’ lives.
Jon Hall added, “This latest research reinforces OSB Group’s view that the journey to professionalization is one that many landlords are committed to. We will continue to support our landlord and broker clients and the Landlord Leaders Community members to ensure this optimism and action are replicated and recognized.”