Despite the often negative headlines, landlords are doing it for themselves - and their tenants - with new research from Pegasus [i] showing landlords are making more and investing more in 2024. When we compare this to our annual OSB Group Landlord Leaders research, we can see that the shift our community has been leading, is really starting to come to fruition.
In recent years, there has been a noticeable transformation from landlords towards a more tenant-focused approach, despite some tough economic and market conditions. The vast majority of landlords we spoke to (75%) are engaging, or planning to engage, with tenants to better understand their needs and foster positive relationships. Positivity is playing out in how they feel too - three-quarters (76%) of the past, present and future renters say their current rental tenure suits them.
Underpinning that outlook, is a shift in financial position - with a rise in average rental yields for the third consecutive quarter, reaching a record high of 6.1% in Q1 2024, an encouraging trend. Housing one in five people in the UK[ii], demand for the Private Rented Sector remains strong, and as we approach the busiest months in the rental market, maintaining an adequate supply of rental housing is crucial to ensure tenants can be housed in appropriate and affordable accommodation.
The Pegasus data is encouraging when it comes to the supply of quality properties, with one in 10 landlords planning to make energy efficiencies to their portfolios within the next 12 months. This is supported by our own research which shows that 69% of landlords have already increased or plan to increase their property portfolios, with this figure rising to 77% among professional landlords.
The investment doesn’t stop with the physical properties though, our research found that 58% of landlords plan to hire more staff, and 68% are dedicating more time to enhancing the tenant experience. All positive change in the march towards professionalisation of the industry and a thriving Private Rented Sector.
What happens next, some might say, will depend on who becomes our next housing minister and whether they can truly take a long-term position. While that would be welcome, I’d say that despite the turbulence of the markets and the political environment, we can rely on our landlords to focus on the best outcomes for the industry and their tenants
i Pegasus Insight - Landlord Trends - Subscriber Report - Q1 2024 (April)
ii English Housing Survey 2021 to 2022: private rented sector
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