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Categories: government and politics | property market
Recent research conducted by specialist lender Aldermore sheds light on the significant financial contributions landlords make to local economies.
Amid a cost of living crisis, this survey suggests landlords are an often-overlooked support for local communities, not only through providing housing but also by providing business to local businesses.
The survey has been conducted by Aldermore, a leading specialist lender, who gathered data from their landlord clients.
Survey findings from Aldermore
According to Aldermore's findings, a staggering 79 per cent of landlords prefer to engage tradespeople located near their rental properties.
This preference for local services translates into substantial spending, with each landlord investing an average of £6,003 each per year on these services.
The most sought-after local tradespeople include electricians (52 per cent), plumbers (50 per cent), and handymen (34 per cent), highlighting the reliance on local expertise for property maintenance.
However, maintenance work is not the only local business landlords seek, with a notable percentage of those surveyed by Aldermore opting for local services for interior design (15 per cent) and architectural work (14 per cent).
The motivations behind landlords' preference for local services are varied. While 34 per cent cite trust as a primary reason, an equal proportion emphasise the valuable insights into the local area that tradespeople can provide, enhancing the overall quality of service delivered.
An undervalued service
The survey found that 69 per cent of landlords believed that private landlords exiting the marketed will ‘hurt the quality of properties available’.
However, despite their significant contributions, landlords face challenges.
74 per cent of landlords report increased difficulty operating in the sector compared to the previous year.
Economic factors such as high interest rates, uncertain house prices, and rising living costs have prompted 59 per cent of landlords to contemplate downsizing their portfolios.
Yet, amidst these challenges, landlords remain crucial to meeting the UK's housing demand and boosting local economies.
The survey reveals that 71 per cent of respondents recognise the indispensability of the private rented sector (PRS) in addressing housing needs.
Additionally, 73 per cent of landlords experienced a surge in tenant demand over the past year, underscoring the sector's significance in fulfilling housing requirements.
Industry thoughts
Jon Cooper, head of mortgages at Aldermore, acknowledges the prevailing market challenges but remains optimistic about the sector's resilience.
Landlords remain absolutely vital to addressing the UK’s housing demand. Our data show they’re generous contributors to their local economies as well.
Whilst they sometimes get bad press, there are so many good landlords out there making a really positive difference.
Despite facing economic headwinds, landlords continue to invest in local communities and drive economic activity with local business.
As stakeholders navigate the evolving landscape of the rental market, recognising and supporting the contributions of landlords remains as important as ever in ensuring sustainable housing solutions for all.
