August 31, 2011
As the UK property buyers' and sellers' market continues to falter, landlord optimism is at its highest point for almost four years.
According to the National Landlords Association (NLA), who published their Landlord Optimism Index this week, 65% of landlords surveyed rated prospects for their own lettings business over the next three months as "very good" or "good".
The private rented sector (PRS) also received rave reviews, with 54% of PRS landlords rating the industry's prospects as "good or very good", an increase of 8% from second quarter of 2010.
"After a challenging few years, it is encouraging to hear that the majority of landlords are feeling positive about their lettings business and the overall state of the private-rented sector," said David Salusbury, NLA Chairman.
"The increasing availability of buy-to-let mortgages and strong demand for rental accommodation is further stimulating positive sentiments, with rent arrears appearing to stabilise and void periods decreasing in recent months.
"The private-rented sector is demonstrating its resilience, in marked contrast to some other industries and investments."
But such good news comes with a twinge of pessimism, as landlords remain less than certain about the state of the UK financial market, with just 6% giving a positive rating (down 3% with when compared with the same time last year).
"Like other business people, it is clear that landlords are not immune from the effects of financial uncertainty. The fragile state of the economy is a concern for landlords, many of whom have mortgages to pay or rely on their property portfolios to earn a living," added Mr Salusbury.
"The cuts to local housing allowance are a further worry for tenants and landlords alike; both should be mindful of how they may be affected and give consideration to how they will deal with the long-term consequences of welfare reform."
