London confidence has dipped in response to ongoing political uncertainty in Britain, according to the latest landlord sentiment research from Foundation Home Loans.
Over two-thirds of the 780 landlords surveyed think landlord confidence has fallen, with a fifth of UK landlords noticing increased competition in the buy-to-let market as a result of political uncertainty, and 25 per cent of landlords operating in central London.
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A quarter of landlords operating in central and outer London have upped rental prices as a result of the lingering political jitters across the UK over the past year, though that was below the average of 30 per cent across the UK.
Foundation Home Loans said 45 per cent of landlords in central London had reviewed the size of their portfolios, compared to 40 per cent in outer London.
A higher percentage have noted a fall in transactions too, with 47 per cent of central London landlords seeing a drop, compared to 35 per cent on average across the country.
Tenant demand in the past three months has also been impacted by what the Foundation Home Loans called the “fragile climate”.
Jeff Knight, director of marketing for Foundation Home Loans, said:
Landlord confidence has taken a hit since the General Election and throughout ongoing changes to the buy to let market, but the London market often faces its own particular challenges – not least the rate of stamp duty.
Confidence amongst landlords operating in Outer London has plummeted, despite incidences of rental arrears (-11 per cent) and void periods (-7 per cent) decreasing and a greater number of landlords making a profitable full time living from their letting business.
However, it wasn’t all doom and gloom. In central London, landlord confidence in their own letting businesses rose 12 per cent, with a greater proportion making a profit from letting their properties since last quarter.
“Central London’s busy hive of buy to let market activity demonstrates clear resilience during the uncertainties of the past year,” Knight added. “Plus, if we consider the ripple effect the City tends to have for the rest of the UK, we can expect greater optimism for the market in the months to come.”
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