PRS 'Crisis' Will 25% Of Landlords Sell Up
The confidence levels among landlords in the private rental sector are so low that 25% of them say they will be selling at least one property in the next 12 months, one report reveals.
The Residential Landlords' Association (RLA) says this figure is the highest since they started asking members regularly the same question three years ago.
The survey also highlights that 23% of landlords are seeing greater demand for rented homes, while 57% say demand is stable.
Now, the RLA says that it's important that landlords retain their confidence to help deliver the homes for renting that are needed desperately by tenants.
They point to the crisis in rented homes and say the government needs to consider new regulations covering how landlords regain possession of their rental homes under legitimate circumstances.
Planned changes should be both 'effective and fair'
They say that the planned changes to the rules should be both 'effective and fair' for tenants and landlords alike.
The RLA's policy director, David Smith, said: "The talk of having longer tenancies means nothing if homes for renting and not there.
"The government's increases in tax already make it difficult for tenants finding somewhere to live and many landlords are not renewing a tenancy.
"If the planned changes on how landlords repossess a property are not thought through and rushed, the situation will be made worse."
He added that the government needs to take steps in stimulating rental property supply with a fair repossession process and progressive taxation in place.
Best rental yields are for HMOs
Meanwhile, it's been revealed that the best rental yields across all property investment types are for HMOs.
The data has been published by Leeds building society who say that homes in multiple occupation deliver the highest rental yields.
They say that a typical HMO yield is 6.9% - that's higher than the average for all property types of 5.8%.
The building society's director of products, Matt Bartle, said: "For landlords wanting higher rental yields, the research confirms HMOs' importance.
"Landlords are increasingly turning to this specialist area, particularly in urban areas and university towns with higher housing costs."
The building society says it is enhancing its lending criteria to be inline with licensing and planning requirements for both large and small HMOs.
The lender also states that it is reviewing its product range to help meet the needs of landlords in what is an 'underserved part of the market'.