A recent poll conducted by flatshare site SpareRoom has revealed a significant decline in landlord confidence regarding the rental market. The survey, which polled 1,300 landlords, found that as of last month, only 19% of landlords expressed confidence in the rental market, a stark drop from 54% in December 2023.
Landlord confidence had remained relatively stable since June 2021, with survey data from the past three years showing an almost even split between confidence and lack of confidence. However, the latest figures indicate a noticeable shift in sentiment.
The July 2024 poll also explored landlords’ perspectives on the new government’s housing policies. A substantial 79% of respondents expressed scepticism, stating they do not believe the policies will improve the rental market. Only a small fraction, 3%, believed the new policies would have a positive impact, while the remaining 18% were undecided, with 4% saying “I don’t know” and 14% indicating it was “too early to tell.”
Matt Hutchinson, Director of SpareRoom, commented on the findings: “There’s a stark contrast in landlord confidence in the rental market now compared to the last three years, and there seems to be little faith in the newly elected government when it comes to housing policy.”
Hutchinson pointed out that the upcoming abolition of Section 21, a regulation that has been favourable for landlords, could be contributing to the decline in confidence. The Renters Reform Bill aims to eliminate this regulation, potentially reshaping the rental landscape.
“It will be very interesting to see if confidence grows based on key decisions the government makes over the next year, which will naturally also reflect changes in rents across the country,” Hutchinson added.
As the rental market faces these challenges, landlords and tenants alike will be closely monitoring the impact of government policies on housing dynamics.