landlord survey - homelet

LANDLORD Survey2017Survey of the UK’s landlords provides key insights into the UK’s private rented sector

Key headlines • 96% of landlords were happy with their current tenants

• 76.2% of landlords have no intention of expanding their property portfolio in 2017, with 10.5% saying that they will reduce the size of their portfolio

• 51.4% of landlords actively plan on increasing their rents within the next 6 to 12 months

• 51.7% of landlords have had to deal with a problem tenant in the past

• 62.7% of landlords surveyed have been a landlord for over 6 years

• 24.8% of respondents who become an accidental landlord now own more than one rental property

• Almost 40% of respondents own their investment properties outright with no mortgage

HomeLet Landlord Survey 2017

Page 1

Age Male Female Total

Under 25 0.2% 0.2% 0.4%

26-30 0.9% 1.2% 2.1%

31-40 5.4% 6.4% 11.9%

41-50 10.5% 11.0% 21.5%

51-60 15.3% 14.8% 30.1%

60+ 13.9% 20.2% 34.0%

Total 46.2% 53.8% 100.0%

About the landlords surveyed Our survey spanned the entirety of the UK covered a vast variety of age groups, which allowed us to gain an accurate representation of landlords’ views on the private rented sector across a number of demographics.

Age and gender of landlords

Background Survey of the UK’s landlords provides key insights into the UK’s private rented sector.

We recently surveyed landlords for their views on the private rented sector to understand their experiences. The survey, conducted in January, received 3,726 responses. Landlords were asked for their views on the UK’s rental market, their experiences with their tenants and their expectations for the year ahead.

53.8% 46.2%


Page 2

More than 10 years

41.6%

6 to 10 years

21.1%

1 to 5 years

29.2%

Less than 1 year

8.1%

How long have you been a landlord?

How did you become a landlord?

Inherited property

8.5%

Changing personal or

marital status

14.0%

Private / individual property investment

20.6%

Buy-to-let investment

41.7%

Pension investment

5.9%

Other

9.3%


Page 3

Accidental

22.5%Other

9.3%

Investment

68.2%

Landlord type

How many rental properties do you own?

(Number of properties)

1 2-3 4-5 6-10 10+

49.7%

26.7%

10.2%7.0%

6.4%

(Number of properties)

Type of landlord 1 2-3 4+ Total

Investment 38.3% 30.7% 31.0% 100%

Accidental 75.2% 18.3% 6.5% 100%

Overall 47.5% 27.6% 24.9% 100%


Page 4

Rental properties by type of landlord

Almost 50% of landlords owned a single property, with 23.6% of landlords own more than 4 properties. In the 2015 HomeLet Landlords Survey only 9.5% of landlords owned more than 4 properties. Interestingly, 24.8% of respondents who became an accidental landlord now own more than one rental property.

2.3%

I don’t know

2.3%

100%

6.0%

Between 75% and

99%

8.3%

Less than 25%

10.3%

Prefer not to say

38.9%

I own it outright

15.3%

Between 25% and

49%

16.6%

Between 50% and

74%

3.0%

0%*

2.1%

Part time employee**

19.8%

Prefer not to say

37.0%

Less than 25%

7.6%

75% or more

7.1%

I don’t know

6.5%

Between 50% and

74%

16.9%

Between 25% and

49%

*e.g. not currently occupied**Less than 29 hours per week

Mortgages and income What percentage do you owe on your buy-to-let mortgages, in relation to how much all of your buy-to-let rental properties are worth?

Approximately what proportion, if any, of your current gross household income would you say is rent received from residential lettings?


Page 5

Letting agents Do you use a letting agent?

No20.8%

Yes79.2%

What do you use your letting agent for?

Fully managed service

Tenant find only

Let only

Other

60% 80%40%20%0%


Page 6

60.7%

29.8%

6.1%

3.4%


Page 7

Landlord type

Single propertyMultiple properties

(2-3)Multiple properties

(4 or more)

Fully managed service 61.8% 48.0% 26.9%

Tenant find only 16.8% 25.6% 33.0%

Do not use a letting agent 15.8% 19.3% 28.5%

Let only 3.5% 4.3% 7.3%

Other 2.1% 2.8% 4.3%

Total 100.0% 100.0% 100.0%

What do you use your letting agent for: By landlord type

Fully managed service

of landlords don’t use fully managed service with a

letting agent due to it being too costly

of landlords chose ‘expertise’ as their main reason for using a fully managed

service with a letting agent

Attitudes towards tenants Are you happy with your current tenant(s)?

Overall, our survey revealed that 96% of respondents were either ‘very happy’, ‘happy’, ‘somewhat happy’ or ‘quite happy’ with their current tenants. Landlords are happier with their tenants than the 2015 landlord survey where 53% were ‘very happy’ and 23% were ‘quite happy’.

This evidences a potentially strong relationship between landlords and their tenants. This also correlates with our tenant survey, where 86.3% of tenants were happy with the landlord or organisation that manages their property. Overall, the relationship between landlords and tenants seems mutually beneficial.

Very happy 55%

Somewhat happy 6%

Quite happy 35%

Not really 2%

Definitely not1%


Page 8


Page 9

No48.3%

Yes51.7%

Late/non-payment of rent

Didn’t clean the property properly

Damaged the property

Noise complaints

Refused to leave the property at the end of tenancy

Illegal activity

Sub-letting

Didn’t allow access to the property

Other

70%50% 60%30% 40%10% 20%0%

Have you ever had to deal with a problem tenant?

If yes, what was the problem with the tenant(s)?

67.7%

11.3%

18.8%

11.1%

10.5%10.7%

22.2%46.6%

54.8%


Page 10

Have you ever withheld a tenant’s deposit?

Yes

My letting agent deals with deposits

I don’t take deposits from

my tenants

27.6%

No

35%35.7%

1.7%

Of these, 30.8% withheld a deposit because of rent arrears and 29.3% due to damage to fixtures and fittings

35%30%25%20%15%10%5%0%

Rent arrears

Cleaning

State of garden

Damage to fixture and fittings

Damage to furniture

Other

30.8%

29.3%

26.7%

3.4%

1.6%

8.2%


Page 11

Dogs only

5.9%No

57.4%

Cats only

11.1%

Most animals

25.6%

Would you ever consider a tenant with pets?

Over half of landlords (57.4%) told us that they would not consider renting to a tenant who had a pet. In the 2017 tenant survey 43.6% of tenants stated they would like pets but their tenancy agreement does not allow this.

By accepting tenants with pets landlords and letting agents could potentially increase demand for their properties and attract tenants. Dogs Trust has put together a Good Practice Guidelines to help rent properties successfully to pet owners.


Page 12

Right to Rent Are you aware of your Right to Rent responsibilities?

Who does your Right to Rent checks?

I do them myself

22.7%

My letting agent

72.0%

Other

5.3%

No

8.4%

Yes

70.7%

Unsure

20.9%


Page 13

The future In 2017, which statement most applies to you?

76.2% of landlords have no intention of expanding their property portfolio in 2017, with 10.5% saying that they will reduce the size of their portfolio.

No. of properties

Single property

Multiple properties

(2-3)

Multiple properties (4 or more)

Not specified

Overall

I plan to BUY and expand my portfolio 8.3% 17.0% 20.7% 12.1% 13.3%

I plan to stay the SAME 84.3% 74.5% 61.8% 75.8% 76.2%

I plan to SELL and reduce my portfolio 7.4% 8.4% 17.4% 12.1% 10.5%

Total 100.0% 100.0% 100.0% 100.0% 100.0%

Plan to buy and expand their portfolio

13.3%

Plan to sell and reduce

their portfolio

10.5%

Remain the same

76.2%

In 2017, which statement most applies to you: By landlord type


Page 14

Do you plan on increasing the rental amount on any of your rented properties?

What’s the primary reason for any increases in your rental values?

To keep up with inflation/market forces

Increase in tax liability

Renovation to property

To increase profitIncrease in mortgage

paymentsIncrease in letting

agent fees

Other

0% 10% 20% 30% 40% 50% 60%

Yes - in the next 6 months

17.9%Yes - in the

next 12 months

18.7%

Unsure

17.4%

No

31.1%Yes - in

over a year

14.8%

Our survey also showed that 51.4% of landlords plan to increase the rent on their properties in the near future, with 36.6% confirming they plan to do so within the next 6 to 12 months.

55.0%

4.4%

4.8%3.1%2.3%

9.1%21.3%


Page 15

What are your biggest concerns for the next 12 months?

For more insights into the private rented sector, and to make sure you’re up to date with the latest news, make sure you’re subscribed to the Landlord Lowdown newsletter and follow us on Twitter and Facebook.

I have no immediate concerns as a landlord

More potential changes to legislation

Restrictions of buy-to-let mortgage lending and interest tax relief

Potential implications of Brexit

House price values

Rent arrears

The proposed ban on upfront fees to tenants

The Renters’ Rights Bill

Lack of demand from tenants

Right to rent checks

Other

0% 5% 15%10% 25%20% 35%30% 40%

33.8%

31.4%

28.9%

18.6%

13.6%

12.6%

8.9%

9.5%

4.4%

4.7%

11.7%

HL4

736

02/1

7With 25 years supporting the industry, HomeLet is one of the leading sources of support for the UK’s vibrant private rented sector. Part of the Barbon Insurance Group, we’re based in Lincoln, with more than 300 members of staff working hard every day to support letting agents, landlords and tenants.

About HomeLet

For more information on the rental market please visit

homelet.co.uk/homelet-rental-index

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