Landlords want to see a radical overhaul of the private rented sector (PRS), with a streamlined eviction process emerging as the top priority to encourage greater investment.
Research by Pegasus Insight, mortgage market specialist, reveals that 64% of landlords consider an efficient eviction system essential, that’s more than the number wanting lower taxes.
More than 60% of landlords also want to see a drop in Capital Gains Tax, tax relief on mortgage interest payments being reintroduced and the 3% Stamp Duty surcharge being ditched.
Also, 59% of the landlords questioned said they would invest should BTL mortgage rates dip below 4%.
Insight into landlords' concerns
One of the firm's directors, Bethan Cooke, said: "This research provides valuable insight into landlords' concerns.
"The fact that a larger proportion of landlords point to a more efficient eviction process as a greater spur to investment than a lower tax regime demonstrates how worried they are about the removal of Section 21 'no-fault' evictions in the Renters' Rights Bill, which the government has confirmed it will introduce within the next year.
"It is no secret that there is a massive backlog in processing evictions through the legal system, and industry bodies have warned that banning Section 21 could overwhelm the courts and prove the final nail in the coffin for some landlords."
She added: "Our research demonstrates that, whatever form the new Bill takes, it must be considered carefully to take into account landlords' concerns as well as tenants', to prevent a decline in rental property numbers, and an accompanying rise in rents."
Predictability in regulation
The landlord research also highlights that 52% would be encouraged to invest in the PRS if there was more stability and predictability in regulation.
That number is matched by those landlords wanting to sell up in the next year - this group also has a stronger belief in an efficient eviction process at 71%.
However, landlords don't see house prices falling as being a crucial factor for PRS investment - just 16% said this is important.
Section 21 'no-fault' evictions
The research comes in the same week that Citizens Advice revealed it is now helping almost 100 people every day with Section 21 'no-fault' evictions – which it wants to be banned.
The organisation says that more than a third of renters (37%) who are living with damp, cold or mould have avoided complaining to landlords, fearing retaliation - including eviction or rent increases.
Dame Clare Moriarty, the chief executive of Citizens Advice, said: "The government must follow through on its promises and improve the lives of private renters.
"This means raising the quality of privately rented housing, tackling runaway rents, and bringing in a watertight ban of section 21 evictions so renters aren't afraid to challenge poor conditions."
'Landlords want an efficient eviction system'
Simon Thompson, the managing director of Accommodation for Students, said: "It should come as no surprise that landlords want an efficient eviction system in place before they invest in the PRS.
"All landlords want reassurance that they can gain possession when they need it without waiting months for a court system to deal with an eviction.
"It's also heartening to see that landlords are still interested in investing, though a sizeable proportion want to see lower taxes."
He added: "A thriving PRS needs small and portfolio landlords to invest and provide quality accommodation for tenants.
"Without us, the sector will see rented home supply continue to fall and rents rise - which won’t help tenants in the long run."
