Central London landlords were the most likely to reduce their rent prices in England over the past 12 months, according to a new study from Paragon Bank.
The survey of 1,043 landlords, conducted by BDRC on behalf of the specialist lender, found that fewer central London landlords reported tenant demand to be stable or increasing than in any other region, while more than a quarter were likely to have reduced their rent prices in the last 12 months.
The study also found that landlord confidence overall had remained positive or increased in the first quarter (Q1) of 2018, compared with the corresponding period of 2017.
Landlords in the East of England were the most positive about the future, with over half -53% – of those surveyed indicating that they felt upbeat about the prospects for their own lettings businesses over the next three months.
In contrast, central London landlords were the least optimistic, with just 26% rating prospects for their own businesses as good or very good over the next three months.
John Heron, the Managing Director of Mortgages at Paragon, comments on the findings: “After an unprecedented level of change, it’s encouraging to see landlord confidence stabilising this quarter.
“At a regional level, the East of England and the Midlands look well supported, with encouraging data on tenant demand, yield and capital gains, while the London market adjusts its footing after many years of strong growth.”
Central London landlords, are you expecting to reduce your rent prices in the future in order to attract more tenant demand?
If you’re based elsewhere in the country, how does your sentiment compare to the opinions of those included in the Paragon survey?
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