Small Scale Landlords Suffer with Increased Void Periods

01 August 2012 Categories: News

Small Scale Landlords Suffer with Increased Void Periods

According to recent research conducted by leading market research company, BDRC Continental, the number of small scale landlords (those that own a single rental property), who are experiencing void periods and rent arrears has doubled since the first quarter of this year. The results of a survey sent to the company’s landlord panel shows that 16% of single property landlords experienced either void periods or rent arrears during the second quarter of the year – up from just 8% in the first three months of the year.

In contrast to this though, it seems that more landlords with larger portfolios are now making a healthy profit from the private rental sector. It also emerged that the general consensus regarding tenant demand has swung from ‘increasing’ to ‘no change’ in many UK regions.

Director of BDRC Continental, Mr Mark Long, commented on the latest findings by saying, “It is a tough time to be a private landlord if you have only one property in your portfolio. Over the last quarter, profitability has clearly taken a dive.

“Regardless of their size, there is no question the private rental sector relies on private landlords and, whilst a third may aspire to increase their property portfolio, they will only be able to achieve this goal and add to Britain’s privately rented housing stock if they can make a profit from that one property.”