Private property landlords confidence plummets as spending cuts and economic uncertainty hits home

 
The latest confidence index for September from Upad also shows that general gloom about the economy and worries about unemployment are also affecting landlords’ out look in the buy to let market.
 
Some 57% of the 319 landlords responding to the survey said that they were more confident this month than last. This is down from 64% in August and 60% in July.
 
Even landlords who said they felt more confident now, highlighted areas of future concern including good rental leads but high finance charges that are stopping further expansion. The report reveals that landlords worry that rental arrears can only get worse as people are made redundant and benefits are cut.
 
Those that are less worried say that they are feeling confident because of the current ease of finding tenants. ‘The market seems buoyant with any properties that have become vacant this year being relatively easily re-let and in all cases with a rental uplift included,’ said one landlord.
 
Those feeling less confident said that they have found that lenders are cautious generally about lending money on property and demanding higher deposits and rates well above base rates.
 
‘This is the lowest we’ve seen landlord confidence since the Emergency Budget in June. The responses we’ve had from landlords this month have been unusual because there isn’t one single theme: changes within the benefits system, the economy and finance are all causing landlords concern at the moment,’ said James Davis, chief executive officer of Upad.
 
‘It’s unsurprising because even so-called expert commentators can’t agree on which way the economy in general and the housing market in particular is going to turn. Until landlords can see some certainty in their future, we can expect confidence to remain lowered,’ he added.
 
However, there is one potentially good piece of news for the sector with the Paragon Group of Companies announcing it is to return to new lending and aims to expand choice and competition for professional landlords in the buy to let mortgage sector.
   
‘It is Paragon’s aim to return to its market-leading position in the buy to let sector, specifically targeting professional landlords. This is an area of the market currently underserved and one which Paragon is well positioned given its expertise and experience in buy to let lending. Paragon will offer a range of buy to let products through the Paragon Mortgages brand,’ a spokesman said.
 
The product range will include fixed rates starting from 5.3% and tracker rates starting from 4.3%. ‘Paragon’s lending criteria mean it can offer professional landlords facilities that are not widely available elsewhere, such as limited companies, multi-unit blocks and Houses in Multiple Occupation (HMOs),’ he added.