The Property Redress Scheme, one of two approved ombudsman-style schemes for the private rental sector, has published the findings from a major survey.
Some 2,700 landlords and letting agents were consulted and according g to PRS the results highlight “a pivotal crossroads for the PRS, with a clear call for legislative reform and greater government support.”
Compliance with regulations emerges as a significant burden, necessitating streamlined processes and policy adjustments. The sector's resilience is evident, but concerns over financial sustainability and market viability persist.
Here are key highlights from the survey, with the Property Redress Scheme’s own commentary.
Self-management increased from 56.3% in 2022 to 65% in 2023, which in the era of compliance and legislative reform is surprising. But nearly a fifth of landlords (19%) adopt a hybrid approach, perhaps something more may consider in future. However, it would seem landlords like self-managing, with a substantial majority (84.8%) expressing confidence in their property management choices.
Fitness for purpose - Only 43.3% of landlords and 52.2% of agents feel the sector is ‘fit for purpose’. Reasons cited include regulation, poorer tax breaks, increased mortgage costs, upgrade costs and removal of Section 24. This is a significant drop on last year when a strong majority of agents (76%) and landlords (72%) felt it was fit for purpose, citing regular income and protective regulations as key reasons.
Value for money - At the start of 2023, the majority of landlords felt that renting offers good value for money for tenants (85.8%). Many offer below market rents, have long standing tenants, or have absorbed mortgage interest increases. Just 14.2% of landlords changed their minds over the year. 73.2% of agents also believed at the beginning of 2023 that renting offered good value for money for tenants (compared to almost 90% at the beginning of 2022), but 23.2% of them have since changed their opinion. This is due to factors such as reduction in supply and tenants outbidding each other.
Financial return - Despite the majority feeling that renting offers good value for money for tenants, only 51.7% of landlords were satisfied with their financial return in 2023 (a drop from 79.2% at the beginning of 2022), compared with 63.1% of agents.
Government support - 61.9% of landlords said they felt ‘not supported at all’ by the Government (an increase from 43% in 2022) with 78.6% saying that legislation ‘hinders’ landlords, compared with 48% in 2022. 50.2% of agents feel they are not supported at all by government.
Biggest challenge - The overwhelming majority (67.5%) of landlords indicate that legislation is the biggest challenge they face. This is a steep increase compared to the 2022 survey, when legislation was a top concern for well under half (39%) of landlords. Agents also said legislation is the biggest challenge (58.3%), overshadowing traditional concerns such as property maintenance and rent payments. This contradicts why the majority of landlords still choose to self-manage. However, despite finding legislation challenging, 89.4% of landlords said they are very or quite confident in compliance with legislative requirements.
Section 21 - A majority of landlords (80.5%) and agents (71.9%) view the abolition of Section 21 negatively. This is a significant increase from 39.2% of agents and 49.2% of landlords in our 2022 survey.
Pets in lets - Only 8.7% of landlords are in favour of having pets in their property, compared to 30.4% in 2022. 49.6% said they were strongly or very strongly against, a slight increase on the 40.1% who were strongly or very strongly against in 2022.
Future outlook - Despite challenges, 57.1% of landlords see themselves continuing their journey in the rental sector in three years’ time. This is a significant decline on our 2022 survey, where a strong majority of landlords (80%) envisioned themselves continuing in their role. A majority of agents (67.8%) see themselves still being in the role in three years compared to 76.7% in 2022.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
.jpg)
.png)
Join the conversation
Jump to latest comment and add your reply
80.5% of landlords view the abolition of Section 21 negatively. 😀
Has anyone told the Bungling Boy Beadle? 😂
I did
I did. Last year in a conference in Manchester Airport Hilton told him Mr. Beadle you bitrade us. I said you have thrown the towel in. The members expected you to fight in order to keep Section 21. Now you are hiding yourself behind Section 8 procedure. You have simply failed us. Of course in defence he came up with a lot of jargon, which I am sure even himself did not believe them.
Hopefully I will be all sold up before Labour get in and do god knows what 🥵🥵
Dare we hope that the pennies are begging to drop about the now dire state of the PRS? ………No probably not!
I cannot count them with an IQ that high to understand 🫣
It is taking a long while for the pennies to drop. Unfortunately we make a good whipping boy for most politicians. Although I am compliant with regard to all the regulations they are onerous and the penalties are too severe; the worse being you may be prevented from serving a Section 21 if you get something wrong. Removal of Section 21 is the landlord’s greatest fear. I am worried Labour will go one step further and grant lifetime tenancies. However I cannot see the Corporates liking that but they may get an exemption the rest of us do not have the benefit of. I feel the future for the PRS is very bleak.
I see Labour bringing in emergency legislation to ban evictions and a rent increase cap, then we are trapped like 🐀
We are well trapped already Simon, stay-in 40/45% tax on return with Section 24, no indexation or taper relief affecting long term landlords especially, sell and pay 24% c/gains tax reduced from 28% fair enough but no better off because of your tax free allowance cut from £12k to 3k now disappearing, but its tax on inflation really. Outrageous Licensing Schemes I have done most 4 times getting more onerous all the time to obstruct you, huge costs associated with it and the Council deliberately drag out the Application process un contactable for most parts always on leave just talking machines or automatic useless standard email response .I have some vacant because of this nonsense and pay double C/tax on empty for a non service (no bin to be emptied).
Long term landlord can’t sell or gift it because of financial penalties, cannot die because of Inheritance tax, no exit allowed.
You paint a grim picture Michael but sadly an accurate one.
Fery. I have come across Mr Ben & Co too at various investment shows whether it was Excel, Olympia or Old Billingsgate they were all there even had a hiding place to escape when challenged behind the Stall, a double screen barely room to stand, I thought where did he disappear to but he was in there, could have got a part on Paul Daniel’s show disappearing act.
Please login to comment