Market insight by Zero Deposit has found that landlords are largely unfazed about a potential change of political party following the General Election, with the majority planning to maintain the size of their buy-to-let (BTL) portfolio for the foreseeable future.
Despite an increasingly difficult environment, Zero Deposit found that 82% of landlords chose to maintain the size of their BTL portfolio under the Conservative Government.
However, one in 10 chose to reduce its size, while just 6% added to it.
Further changes were due via the Rental Reform Bill, most significantly a ban on Section 21 Evictions, but 27% of landlords think the bill will now be dissolved.
Despite the future of the rental market now being uncertain, Zero Deposit found a potential change of political party was unlikely to faze landlords.
78% stated that they would continue to maintain the current size of their portfolio should Labour win the General Election.
However, 19% stated that if Labour were to win they would reduce the size of their portfolio, double that to have done the same under a Conservative Government.
When asked which of Labour’s rental market promises they were least in favour of, the intention to end automatic evictions for tenants who fall into rent arrears ranked top.
Rights for renters to have pets was the second least favourable Labour policy, while mandatory EPC upgrades also ranked high at number three.
The abolishment of Section 21 notices only placed fourth, with four month notice periods also making the top five.
Sam Reynolds, CEO of Zero Deposit, said: “Traditionally the Conservatives may have been viewed as the party of choice for landlords, but we’ve seen a string of legislative changes in recent years that may suggest otherwise.
“Despite a squeeze on profitability, the majority of landlords have chosen to maintain the size of their portfolio and given the challenges already faced, it’s hardly surprising that they remain largely unfazed by a potential change of political party at the forthcoming election.
“The election itself has inadvertently shelved the implementation of the most significant rental sector changes in many years and while it remains to be seen just what will come of the Rental Reform Bill, most landlords will be understandably lacking confidence that either party will drive any real improvement in the sector.
“What is interesting to see, is that while Labour have committed to implementing a ban on Section 21 evictions, it isn’t the biggest concern amongst landlords when it comes to potential changes to the sector under the party.”
