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2nd November 2023
5 minutes

Buy-to-Let Landlords Remain Committed to UK PRS for Lucrative Long-term Returns

75% of landlords have identified a “shortage in rental properties in their area” as a “prime opportunity” for property investment according to new data released by corporate property services business, Leaders Romans Group (LRG) – up from just 29% in quarter one of this year – sharing a rare insight into the current sentiment towards property investment in the UK.

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Corporate property services business, Leaders Romans Group, recently surveyed over 380 of its landlord clients regarding their sentiment towards property investment in the UK, with a staggering 75% of landlords identifying a shortage in rental properties in their area as a “prime opportunity” for investment – an increase of 46% over the last two quarters.

Additionally, 62% of landlords surveyed stated that “increased rental yields” were a “real prospect” for their property investments, rising from 44% in the last survey conducted – an increase of 18%.

Supported by the latest Housing Insight Report released by Propertymark in September which showed a significant increase in the number of prospective tenants registered compared to 2022’s figures, LRG have shared that thanks to the current average number of prospective tenants registered in August 2023 (197) compared to July 2022 (147), the demand within UK rental market is at an insatiable level and that landlords are identifying this as a prime opportunity for investment across the country.

Landlords are also reportedly optimistic surrounding the continuous steady rise in house prices, with 40% of landlords anticipating that the house price increases from 2024 and onwards are also an attraction for investors. The strong outlook on the UK property market that these landlords are exhibiting is now being reinforced by the broader market trends across the country that are indicating a slowing of house delivery – therefore contributing to demand outstripping the supply of rental properties available and also bolstering the potential for higher rental incomes for landlords.

“Demand for rental properties has seen a 32% increase since last year, with rental prices continuing to rise. This shows the return on investment for landlords remains positive. Those landlords we have recently surveyed remain optimistic about the opportunities available in the coming year. LRG’s resounding message to landlords is to remain committed on the basis that property investment is a reliable and lucrative long-term option.” Allison Thompson, National Lettings Managing Director for Leaders Romans Group.

While the Leaders Romans Group – which represents over 42,000 landlords worldwide – acknowledges the current challenges in the market, such as the higher-than-normal mortgage rates and the murmurs around the Renters Reform Bill, LRG has stated that they remain steadfast in their belief that multiple essential components for a positive property market remain intact, with the expectation that interest rates will continue to decrease the closer we get to the 2024 general election.

According to their latest data, LRG’s landlords also share a positive outlook for the market with further research showing that the “majority” of landlords are committed to their property portfolios; 68% of landlords intend to maintain their existing holdings, while 6% plan to expand their investments.

To learn more about how you can capitalise on the insatiable rental demand in the UK, speak with one of our team today or call directly at +44 (0) 161 791 4600.

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