Landlords help to boost local economies

The significant financial contribution being made by landlords to regional economies when supporting local trades has been revealed.

Research from Aldermore highlights that most landlords (79%) prefer employing local professionals, with each one injecting an annual average of £6,003 into local services.

Electricians, plumbers and general maintenance workers are the top picks for property upkeep, with 52%, 50%, and 34% of landlords seeking their expertise, respectively.

The trend extends to a broader spectrum of professional services, with 15% engaging interior designers and structural engineers, and 14% enlisting architects from the vicinity.

‘Backdrop of ongoing market challenges’

The head of mortgages at Aldermore, Jon Cooper, said: “Amid a backdrop of ongoing market challenges – from high interest rates through to regulation changes – some landlords are considering downsizing their portfolios.

“However, there will be plenty of larger-scale, professional landlords that will instead look to purchase more BTL properties.

“This should, over time, provide useful ballast to the private rental sector.”

He added: “Landlords remain absolutely vital to addressing the UK’s housing demand.

“Our data shows they’re generous contributors to their local economies as well.

“Whilst they sometimes get a bad press, there are so many good landlords out there making a really positive difference.”

Trustworthiness of their neighbourhood services

Supporting community businesses motivates 37% of landlords, while 34% prioritise the trustworthiness of their neighbourhood trades and services.

Notably, 32% of landlords value the knowledge and expertise of local specialists for better advice.

However, Aldermore found that the current economic climate has seen 59% of landlords looking to reduce their portfolio.

The reasons for doing so include soaring interest rates, depreciating property values, regulatory changes and the cost-of-living issues that have made renting out property less viable for some.

Increased difficulties in being a landlord

A significant portion (63%), report increased difficulties in being a landlord compared to last year.

And 73% of landlords say they have seen growing tenant demand over the past year, but market constraints prevent 64% of them from expanding their portfolios.

The potential withdrawal of landlords from the market could see pressures growing in the private rented sector (PRS) with 69% of landlords predicting a decline in property standards.

However, the research does highlight that 71% of tenants acknowledge the PRS’s critical role in satisfying housing needs.

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