Dispelling the landlord misconceptions

Historically speaking, landlords have not always received the most positive press and some commentators have even given the impression that they constantly place profit over people. During the lockdown, landlord/tenant relationships came under even greater scrutiny but, contrary to some belief, it was great to see so many positive stories emerge around landlords supporting tenants when the going got tough to help dispel this myth.

This period has certainly helped establish the appeal and appreciation of good landlords and good tenants. It has also changed the outlook of landlords when it comes to meeting the needs of their tenants and how this has become central to landlords’ investment strategies and of higher importance than generating high yields or capital appreciation.

This was evident in the recent Paragon Bank Landlord Report 2022 which found that, when expanding portfolios, the top priority for landlords was to ensure that properties are suitable for their preferred tenant type, chosen by just over half (51%), of the 621 landlords surveyed. This was followed by familiarity with the local area, chosen by 48% of landlords, and close proximity to their own homes, a priority for four in 10. Financial aspects of investments were found to be less important for landlords. The potential for capital gains was prioritised by 37%, purchasing for high yields a primary strategy for 32% and low purchase price a key factor for 31% of landlords.

As outlined in the report, these findings are very much at odds with any negative landlord perceptions. Highlighting these misconceptions will help more people realise just how many good landlords there are out there and what a crucial role they play in a private rented sector which continues to prop up the UK housing market.