New research conducted by specialist lender Aldermore unveils the significant financial contribution landlords make to local economies. Approximately eight out of ten landlords prefer utilizing tradespeople situated near their rental properties. On average, they spend £6,003 per year each on local services.
The services most frequently sought after by landlords within their local communities include electricians (52%), plumbers (50%), and handymen (34%). These professionals play a crucial role in addressing ongoing maintenance issues associated with rental properties. This localized approach not only benefits landlords but also contributes to the vitality of the surrounding community.
An increasing number of landlords are demonstrating a preference for local solutions across a diverse spectrum of professional services. Notably, around one in seven landlords are turning to local interior designers and structural engineers, mirroring a comparable trend in the use of local architects.
The predominant factor driving this shift towards local services is a commitment to supporting the local economy, a sentiment echoed by 37% of landlords surveyed. Additionally, a third of landlords express a preference for local services based on a foundation of trust. Furthermore, nearly a third of landlords find value in engaging local tradespeople, as they offer a deeper understanding of the local area. This nuanced insight, in turn, allows landlords to receive more informed and tailored advice.
This evolving trend not only marks a practical decision-making process for landlords but also underscores the broader impact of local engagement on community dynamics and economic sustainability. As landlords increasingly integrate local professionals into their networks, the symbiotic relationship between the property market and the local economy continues to strengthen.
Against the backdrop of a challenging economic environment, a notable three out of five landlords are contemplating the prospect of downsizing their property portfolios. The confluence of factors such as elevated interest rates, diminishing house prices, regulatory shifts, and the overarching impact of escalating living costs has led to a reconsideration of the viability of the landlord role for a significant segment of property investors.
Indeed, the landscape for landlords has become more arduous, with almost two-thirds expressing the sentiment that being a landlord has become increasingly challenging compared to the preceding 12 months. This discernible shift in perception occurs at a time when the demand for rental accommodation remains robust, evidenced by nearly three-quarters of landlords reporting an uptick in tenant demand for their properties over the past year.
Paradoxically, while the demand for rental housing is on the rise, market conditions have created impediments for landlords aspiring to expand their property portfolios. Almost two-thirds of landlords find themselves constrained by the prevailing economic circumstances, thwarting their desire to broaden their property holdings.
This intricate interplay between economic challenges, evolving market dynamics, and the unyielding demand for rental housing delineates a landscape wherein landlords navigate a delicate balance between portfolio management and the constraints imposed by external factors. As the property landscape continues to evolve, landlords are compelled to reassess their strategies in response to the intricate web of challenges and opportunities inherent in the contemporary real estate milieu.
As an increasing number of landlords contemplate divesting from the market, concerns arise about the potential strain on the private rental sector. A substantial 70% of respondents express the belief that the departure of private landlords will negatively impact the overall quality of available properties. This sentiment is mirrored by an equivalent number of private renters who perceive the private rental sector as crucial in meeting the housing demand in the UK.
Jon Cooper, the head of mortgages at Aldermore, sheds light on the situation, stating, “Against the backdrop of persistent market challenges, ranging from high interest rates to regulatory changes, some landlords are evaluating the option of downsizing their portfolios.” He further notes that despite these challenges, numerous larger-scale, professional landlords may choose to expand their buy-to-let (BTL) portfolios, providing valuable support to the private rental sector over time.
Cooper emphasizes the vital role landlords play in addressing the UK’s housing demand, citing data that highlights their significant contributions to local economies. Despite occasional negative perceptions, he highlights the positive impact of many landlords, stating, “Whilst they sometimes get a bad press, there are so many good landlords out there making a really positive difference.” This nuanced perspective underscores the complexities and potential resilience of the private rental sector amid evolving market dynamics and challenges.
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