Landlord confidence has improved but less than half are ready for the huge changes being swept in by the Renters’ Rights Bill, new research reveals.

In February of this year, 67% of landlords were planning to exit the market, but the latest survey by flatshare website Spareroom reveals that ratio has now fallen to 57%.

Also, 88% of landlords had no confidence in the market in February but by May this had fallen to 76%, although London’s landlords are more pessimistic, according to Spareroom boss Matt Hutchinson (main image).

He also says smaller-portfolio, ‘amateur’ landlords are still a concern, as they may be more likely to exit the market than professional ones.

Four in ten UK landlords with one to two rental properties say they plan to leave the market, compared to 22% of those with five to nine properties and 26% of those with ten or more properties.

Being prepared

These smaller portfolio landlords are also more unlikely to be aware of the Renters’ Rights Bill and less likely to have made any preparations than professional landlords.

In the same survey, SpareRoom asked the 51% of landlords who had made some preparations ahead of the passing of the Renters’ Rights Bill what they had been doing. Almost a third (32%) of UK landlords and a quarter of London landlords say they have increased rents.

Whatever your views on the Bill, change is coming and with very few alterations to what has been proposed.”

Of those who’ve made preparations ahead of the Renters’ Rights Bill, 45% of landlords with five or more properties have increased rents, compared to just 18% among small landlords with one to two properties.

Hutchinson adds: “It would seem any impact on rental supply is likely to come after the Renters’ Rights Bill passes, when the changes kick in and landlords react. Professional landlords are more proactive than small landlords, but that proactivity is still too low – almost half of all landlords have made absolutely no preparations at all.

“Whatever your views on the Bill, change is coming and with very few alterations to what has been proposed, so now is the time for landlords to get on the front foot, gather knowledge, and get ready. Fortunately, awareness is high, but even 7% of landlords in the dark is too many.”