TV property guru Phil Spencer says landlords would be wise to make long-term investments despite their strong position in the current lettings market.
Commenting as part of a Barclays Bank survey of aspects of the private rental sector, Spencer says: “Landlords face competition when it comes to appealing to top-tier renters, who can offer more than simply matching the asking price – a little investment now to secure stable, long-term tenants could pay off if it means spending less money down the line on repairs and having fewer gaps between occupants.”
His remarks come in a Barclays Property Insights report showing that the cost of rent and mortgages stabilised considerably in June, increasing by just 1.5% year-on-year – the slowest rate of growth since March 2023 and well down on the 6.3% reported in May.
The report looks at tenants’ so-called ‘deal breakers’ - that is, what they demand as absolutely necessary in private rental properties. Barclays says: “Landlords and property developers looking to make their homes more attractive should consider whether they’re able to check off more of these items, in order to appeal to a broader range of applicants.”
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Renters’ top 10 deal-breakers when house-hunting
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1
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No damp/mould present
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46%
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2
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Living room/lounge
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34%
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3
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Private garden and/or outdoor space
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32%
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4
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Double glazing on windows
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32%
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5
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Fast internet/broadband capabilities
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24%
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6
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Pets allowed
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23%
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7
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Off-street parking
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21%
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8
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Large bedrooms
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17%
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9
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Likeability of landlord or property agents
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17%
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10
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Private from neighbours/isn’t overlooked
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16%
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The same survey shows that from a landlord’s perspective, the qualities most commonly cited as being mandatory in prospective tenants are cleanliness and proof of income (both 27%). One in three landlords also say they would accept less rent from existing tenants who look after the property, rather than finding new tenants who’ll pay more. In addition, one in four landlords would accept an offer below the asking price for an applicant that’s flexible on the move-in date.
Barclays adds: “In a crowded market – 20% of renters feel there is too much competition for rental properties in their area – those looking for an edge over other applicants should look to highlight these qualities in their applications, where relevant. Similarly, one in three landlords say that personal communication from prospective tenants would make them more likely to consider accepting their application. However, only a quarter of renters say they’re willing to try this, which gives applicants another opportunity to stand out from the pack.”
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Landlords’ top 10 required qualities for tenants
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1
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Cleanliness/hygiene
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27%
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2
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Proof of income
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27%
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3
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Quiet tenants
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24%
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4
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Employed in a permanent job
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22%
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5
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Strong character references
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21%
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6
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Likeability of people
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17%
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7
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Strong employer references
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17%
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8
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Can provide a guarantor for rent
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17%
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9
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Strong landlord references
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16%
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10
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No pets
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15%
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"Landlords would be wise to make long-term investments despite their strong position in the current lettings market"
Yeah. Right.
I am making long term investments ….. 💰💰 Outside of BTL 😂
Phil. Latest one to jump on the letting bandwagon, all mine have those 10 things already maybe stick to your TV buying/sales I haven’t seen you involved in letting stick to something you know, as the host at the Investment show said aren’t they allowed to have 2 cats, a dog and a co,w
Some Survey when location/location/ location didn’t make the top ten, or Affordability.
Anyone Celebrities want more media exposure to further your career just take a pot at landlords guaranteed to make the headlines.
Yes thanks for that Phil
No1 No damp/mould present. It’s never present it’s a peculiarity unique to tenants hardly witnessed in a mortgaged home owner
"20% of renters feel there is too much competition for rental properties in their area". WHY IS THIS?
Why oh why did I spend money and effort on kitchens and bathrooms??
Sorry mate, you are toally off the mark. Tenants' number ONE and only requirement is and always has been SKY TV.
- there are so few rentals in my area their choice and ability to be so fussy is non existent. Affordability is all that counts.
Nothing I liked better than a good long term investment a few yrs ago, not in property now though with the loonie left after us
I didn’t know Phil Spencer was a landlord or a lettings agent. Is there no beginning to his talents?🤔
Not sure that Barclays Bank are experts on these matters and can't agree with those top 10 lists.
Tenants top 5, how much is the rent, overall space and condition of the property, can they have pets, heating / double glazing, garden / parking.
Landlord top 5, can they afford it (will they pay the rent), is it convenient for their jobs, do they have pets, will they look after the place, will they be easy to deal with.
He is out of touch here. Landlords don’t want long term tenants once Section 21 removed!
Investment. Investment is buying shares, pensions, funds, where you do nothing. Property is a business. You need to work. It's laughable how they refer to this as ''long-term investment'' as if our time is free of charge. This mentality is absurd. The government literally thinks landlords should work for free. They have no idea how much work a landlord has to do, especially with a substantial portfolio. There is ZERO incentive to do this work right now. The returns are poor, the hassle is too much, the laws are against us, the looming threats are ridiculous.
Buy a house, take on lots of work, have some government officials telling you what you can and can't do with your asset (which was paid for by your after tax hard earned money), oh and if you build some wealth over the decades, just be aware, that the government will take 40% on your death, payable within 6 months or reverting to a 40% plus interest. No thanks.
Dani, as far as deposit deductions go, you do work for free. If you have to repair or replace anything, you can claim the cost, no betterment though, but not for your time. I always get contractors to do the jobs so I can claim the full amount.
Tenants often dispute cleaning costs saying that they could have done it for less. Of course they get my standard reply of, “Well, why didn’t you?”
Unfortunately every other business is taxed on profit except the PRS who are taxed on turnover, so they don’t regard us as a business.
Annoyed, they want us to put insulation in the properties, yet won't allow it as a tax deductible expense. This is another example of their ridiculous policies.
There are much easier businesses than a portfolio of properties, I can say that having run different businesses.
Dani - No point building up wealth against a Labour government committed to redistributing wealth from you to somebody who hasn’t put in the hard work. We do not need equality of wealth - We need equality of opportunity.
Dani, my loft insulation got wet and was covered in mould and had to be replaced after the roof leaked. I'm sure that there was 300 mm of insulation before it got wet. I think replacing damaged insulation for like for like is an acceptable expense?
I'd probably do more upgrades if they were all tax deductible.
My money is going into tax free investments in the stock market. I don't have ungrateful people calling and textng at 10pm at night with another F problem at the properties, compensation letters, licensing, tax returns, builders, utility bills, painting & decorating, removal and most of all lying letting agents!
Is he missing the elephant in the room he actually created?
He advises landlords to seek long term investment to maximise rental appeal whilst acknowledging the fact that there's actually no need to do so, because the shortage of rental stock means tenants aren't in the driving seat!!
He didn't say it but maybe he's expecting the huge building program to alleviate the housing problem promised by Labour... but even that is hugely misguided because the plan isn't for rental stock. In other words for the foreseeable future there's going to be more demand than supply and landlords don't "need" to invest in the things mentioned here!
Now, these things might be a good idea in order to secure higher rent and better / longer term tenants but that's not what he was saying!
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