Paul Brett, managing director, intermediaries, Landbay
Speaking recently, the Irish Taoiseach, Leo Varadkar said: “I think there has been a demonisation of landlords, and small landlords in particular, in Ireland and that hasn’t been helpful. Lots of people need to rent for lots of different reasons and for that reason, we need landlords.”
While it’s encouraging to hear the head of a major government calling out the treatment of landlords, it’s certainly the exception rather than the rule. On this side of the Irish sea, landlords face similar challenges, having long been subject to successive anti-landlord policy and damaging rhetoric, directed from homelessness charities and the mainstream media.
In fact, when asked during our recently survey at Landbay if the media portrayal of the buy-to-let market is fair and accurate, an overwhelmingly majority said no. One third of landlords (33%) strongly disagreed, while almost half (48%) disagreed.
False perceptions
When asked why, their responses were loud and clear. Many shared the Irish prime minister’s view, feeling “demonised” and portrayed as “greedy” or someone who “doesn’t care about their tenants”.
One of the biggest challenges is this false stereotype that being a landlord is a doddle – you just buy a property, find a tenant and sit back while a juicy yield rolls in. Of course, ‘wealth creation’ experts across social media have helped perpetuate this idea that all landlords use property as a ‘get rich quick’ scheme.
Landlords don’t need me to tell them just how difficult it is, especially in the current climate with increasing costs and the loss of tax incentives impacting their bottom line. Changing legislation is clearly a challenge too, especially the Renters Reform Bill, which ramps up the rhetoric and is set to make the task of evicting difficult tenants much harder.
But while rents may be rising in-line with high demand and increasing costs, it’s the accusations of wealth and greed or “profiteering” that respondents feel most upset about.
As one landlord said: “I strive to keep issues with tenants to a minimum and fix them ASAP. Also regular improvements or preventative measures demonstrate it is a partnership with the tenant. Rents however have to be fair and small increases each year expected. The landlord is made out to be wealthy, greedy and portrayed as someone who doesn’t care about their tenants.”
Blocking buyers
Although demand remains incredibly high for rental properties, landlords feel the important role they play in the UK housing mix is “not recognised” by the media. Rather than taking homes from potential buyers as outlets suggest, landlords argue the private rental sector (PRS) provides “much needed homes not being built by councils”.
A report published in February by Centre for Cities found that Britain is missing as many as 4.3 million homes. This backlog would take more than half a century to correct even if the government did meet its now watered-down target of 300,000 homes per year.
This long held view that without landlords, everyone could buy their own home is not just short sighted, but plain wrong. It’s also true for the assumption that all those that rent do so because they cannot afford to buy. One in five households in the UK rely on the PRS for housing – while some of these may not be in a position to buy, many will never have any intention to.
That’s not forgetting those where renting suits their lifestyle or their work, as one respondent said: “Unfortunately, the media portray BTL landlords as scum, stopping people buying properties. I buy properties and rent them out to people who need to rent, typically teachers, doctors, finance contractors on fixed-term contracts. Buying is not an option for these transient workers. Good landlords don’t get enough positive press.”
Working with the sector, not against
This is certainly true. Beyond the headlines and the anti-landlord agenda, there’s thousands of good landlords across the country that provide quality housing and support their tenants. It’s also far too easy for the government to fuel the fire and make the PRS the scape goat for its own failings in planning reform, housebuilding or expanding social housing.
While undoing tax measures is still off the table, an important first step is for the government to work with the sector to promote good practice and acknowledge the essential role it plays in the wider housing mix in the UK. All good landlords are in favour of protecting the rights of renters and having access to advice, but they ask it is balanced with positive reform for the protection of landlords too.
Whether it’s government policy, newspaper headlines or sentiment in wider society, landlords continue to face unfair pressure. As many respondents have rightly suggested, UK housing would be far worse off if landlords started disposing of buy-to-let properties. My hope is the government understands this before it’s too late.