Landlords confidence drops back, says NLA

Confidence among landlords has dipped for the first time in two years, new research suggests.

According to the latest National Landlords Association (NLA) Landlord’s Optimism Index dropped from 51 to 47 points between the first and second quarters of 2010. This is claimed to have been driven by uncertainties including housing benefits and tax changes.

57% of landlords rated their prospects for the next three months as good or very good in the first quarter of the year. This figure now stands at 54%. However, 40% of landlords expect the increase in Capital Gains Tax to have a detrimental impact on their investment.

Landlords admitted to being concerned with planned cuts to the Local Housing Allowance which is considered to push the rent arrears issue further.

Chris Norris, Policy Manager, NLA, said:

“Despite gains over the past two years, landlord optimism has dropped from the first quarter of 2010 as landlords consider tax changes announced in the emergency budget and they hear talk of a double-dip recession.”

“But despite these negative factors, the NLA / BDRC Continental survey shows that more than half of landlords are still positive about the next three months, predicting strong rental demand as people hold off deciding whether to continue renting or buy whilst current economic uncertainty continues.”