Landlords spend £6,000 each to boost their local economy
The substantial financial contribution being made by every landlord to their local economy has been revealed in a study.
According to Aldermore, around 79% of landlords prefer using local tradespeople for their rental properties - and inject an average of £6,000 annually into local services.
Landlords tend to use local electricians (52%), plumbers (50%) and handymen (34%) for regular maintenance of their properties.
Also, 15% of landlords are employing local interior designers and structural engineers, while 14% engage local architects.
But the survey also reveals a worrying number of landlords wanting to sell - and a fear of what that will do to the private rented sector (PRS).
'Landlords are considering downsizing their portfolios'
Jon Cooper, the head of mortgages at Aldermore, said: "Amid a backdrop of ongoing market challenges – from high interest rates through to regulation changes – some landlords are considering downsizing their portfolios.
"However, there will be plenty of larger-scale, professional landlords that will instead look to purchase more BTL properties.
"This should, over time, provide useful ballast to the private rental sector."
Landlords trust local service providers
Supporting the local economy is the primary motivation for 37% of landlords to use local services - along with 34% of landlords trusting their local service providers.
Those landlords say they enjoy better insight and advice that is provided by local tradespeople.
But things might change since landlords are facing a challenging economic landscape.
Aldermore says that 59% of landlords are looking to reduce their property portfolio due to high interest rates and falling house prices.
Landlords are worried about regulatory changes
Researchers also found that landlords are worried about regulatory changes and cost-of-living pressures.
As a result of those worries, 63% of landlords say they are finding their business more difficult to operate compared to the previous year.
The survey also found there is a surge in rental demand, with 73% of landlords reporting increased tenant interest over the past year.
Despite the growing need from tenants for rented homes, market conditions prevent 64% of landlords from expanding their portfolio.
The potential exit of many landlords
Aldermore warns that the potential exit of many landlords will lead to growing pressure on the private rental sector.
One issue is that 69% of landlords say that private landlords selling-up will negatively impact the quality of available rental properties.
Similarly, 71% of tenants believe the private rental sector is crucial to addressing the UK's housing needs.
Mr Cooper said: "Landlords remain absolutely vital to addressing the UK's housing demand.
"Our data shows they're generous contributors to their local economies as well.
"Whilst they sometimes get a bad press, there are so many good landlords out there making a really positive difference."
'Landlords play a crucial role in our local economies'
The managing director of Accommodation for Students, Simon Thompson, said: "We all know that landlords play a crucial role in our local economies and it's great to see a figure being put on that contribution.
"From tradespeople to professionals, landlords need to utilise the skills and experience of lots of experts to deliver safe and comfortable homes."
He adds: "But the research highlights that some landlords are still looking to sell, and many are worried about the impact that will have on the PRS.
"Along with losing rented homes, the local economy will also take a hit with less money being spent by landlords which could have wider ramifications."
