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Six out 10 landlords feeling confident

Six out of 10 residential landlords are more confident than last month, up from 54% in November, the December Upad Landlord Confidence Index shows.

A total of 404 landlords were surveyed with increased rental demand cited as the biggest reason for this rise in confidence.

Key reasons for confidence included stronger and quality rental demand with cheaper availability to buy at super cheap prices, high demand and low interest rates and low void periods.
 
Of those who said they were less confident, a number mentioned increases in arrears and unpaid rent by their tenants.

The lack of available finance was also highlighted as hampering investors.

James Davis, chief executive officer of Upad, says: “Landlords don’t exist in a bubble: they’re held back by banks who just don’t want to lend money, and more than ever, are at the mercy of tenants who either can’t or won’t pay their rent.

“We can expect this situation to get worse as government cuts bite deeper. Landlords more than ever need to be vigilant about their cash flow and ensure that – if the worst happens and their tenant does stop paying – they have enough available cash to service a mortgage without their rental income.”
 

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JASON BERRY, HEAD OF DISTRIBUTION AND STRATEGY, SAFE & SECURE

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