9:19 AM, 24th June 2021, About 3 months ago 18
A new report published by York University funded by the Nationwide Foundation says current ‘baby boomer’ landlords ageing out of the PRS are not being replaced by new younger landlords at the same ratio due to diminishing returns and more stringent regulation. Click here to view the report
Project lead author, Dr Julie Rugg, said: “This research has really helped us understand how landlords at the lower end of the market pay for and manage their property.
“It’s a real concern that many good, professional landlords are no longer letting to housing benefit claimants, because of the way that Universal Credit is administered.
“Letting property looks altogether different to landlords now: it looks like a much risker proposition, delivering a lower level of return and with a lot more hassle.
“As one landlord said to me, ‘stocks and shares may not deliver the same level of return, but they don’t phone me on a Sunday morning because the boiler’s bust’.”
The main findings of the research indicate:
Across the entire sector there was a fall of 30% in the volume of buy-to-let mortgages between 2014/5 and 2018/19;
Larger landlords and landlords letting to housing benefit claimants were much more likely to be planning to reduce their properties and/or exit the market than to increase their lettings.
Landlords are generally dissatisfied with the weight of ‘regulatory burden’ which includes possible criminal convictions and fines of up to £30,000 for Housing Act contraventions.
A withdrawal or restriction in the ability to serve s21 ‘no fault’ evictions meant that some landlords were worried that they would be unable to evict problematic tenants; there was evidence of landlords paying such tenants to leave
Landlords are reducing their housing benefit lettings and new landlords are less likely to let in this market: only 9% of landlords in the market for three years or less said they currently let to people receiving housing benefit; for landlords letting for 11 or more years, this figure was 28%.
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