Landlords’ confidence in the buy-to-let sector has fallen to the lowest level in over a decade, according to the National Landlords Association (NLA).
The government’s proposal to scrap section 21 eviction notices is thought to have triggered a drop in confidence in landlords’ business expectations to just 29% – the lowest level since the NLA’s survey began in Q4 2006.
The organisation said it was “vital” confidence was restored to the sector which increasingly being used to compensate for the lack of social housing.
This is the biggest drop in confidence levels since the second half of 2015 when the buy-to-let sector was rattled by George Osborne’s changes to landlord taxation. But until now, levels had remained above 35%.
Confidence is highest in the East Midlands and in Yorkshire and the Humber – both 34% – while it is lowest in the North East (18%) and central London (19%).
Richard Lambert, CEO of the NLA, commented: “With the amount of change that has occurred over the last four years and now the proposal to abolish no-fault evictions without any certainty that the courts will be able to cope with the increase in cases this will create, it’s no wonder that landlords are pessimistic about their future.
“Landlords need to be confident in their own businesses for the private rented sector to function properly. Given that it’s expected to compensate for the lack of social housing, it is vital that this confidence is restored.”