Landlord Predictions for 2016

Belvoir recently published a Landlord Survey which asked a series of questions to landlords from ...

Belvoir recently published a Landlord Survey which asked a series of questions to landlords from across the UK (not necessarily Belvoir landlords) to help build a projection of where they believe the market has shifted, their plans for 2016 and the challenges they believe landlords will face in the next 12 months.

When asked what their investment objectives are:

  • 43% of landlords answered to say that they would describe themselves as investment landlords,
  • The smallest percentage of just 3% said they were investing in property to help prepare for their children’s future.
  • Interestingly, 10% of landlords have invested in property to help pay off their residential mortgage.
  • A further 16% were investing as a scheme to help them save for their retirement, a method that is becoming ever popular within the rental marketplace.

There was also a clear theme of discomfort when asked what the largest challenge for landlords will be in 2016. The recent announcement of new taxation and stamp duty entering the market has clearly led to some worry and doubt within the market; many landlords admitted to us that the government’s new plans have left them feeling uneasy about investing. 44% of landlords say that they will be watching the market closely before deciding to invest within the next 12 months with some even expressing that if they were to invest in 2016, it may even be as a limited company.  This is an avenue that we will look at in coming months.

In our 2016 Predictions, we projected that there would be a rental increase in 2016 of around the 3% mark across the UK – this is reflected by landlords who completed our survey with well over half confirming they have not put rents up in the last 12 months and many intending to raise rents by 3% – 5% in the next 12 months. Some landlords, however, confirm they will maintain current rents with 46% planning no rental increase in 2016, this is a relatively surprising result and could be interesting to watch.   In Daventry, Supply is outstripped by demand and the likely result will be a rise in rents.

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