Council carries out research into the experience of private landlords
Posted on Tuesday 16th August 2022
Newport City Council – supported by Tyfu Tai Cymru - has been carrying out research into the experience of private landlords that let properties in the city.
The aim of the research was to better understand the private rented sector in the city and to identify potential policy interventions the local authority could make to support the private rented sector.
In the 2011 census, 8,572 households lived in the private rented sector in Newport, 14% of all households. Data obtained from Rent Smart Wales in 2020 showed that there were 10,551 private rented properties in Newport owned by over 5,000 different landlords.
A survey was developed that mirrored questions being asked in a separate study being undertaken by Generation Rent. This was so results from the two studies could be compared to give a fuller picture of the private rented sector in Newport.
The survey took place between the 19 August and the 25 September 2021.
The responses showed that 74% of respondents had been landlords for 5 or more years, with just 5% being a landlord for six months or less.
68% said their properties were managed either by themselves or a family member with most respondents – 85% - living in Newport or South Wales.
Most respondents also said they relied on their rental income, with 59% saying it was either their main or only income or that they would find it hard to manage without it.
We asked landlords if they had been or were likely to be affected by a range of changes that may impact the financial viability of their letting portfolio. Half of respondents said that they had already been affected by the end of mortgage interest rate relief and over three quarters expected to be affected by proposed increases in Capital Gains Tax.
We also asked about the impact the pandemic had on private landlords, with just over half of respondents reporting lost rental income during the pandemic.
Looking to the future, we asked what landlords were planning to do in respect of their private rented properties.
35% of landlords said they aimed to give up letting properties completely and a further 21% aimed to reduce the number of properties they let.
When asked why they were planning to give up being a landlord the majority responded that it was because it was too much work being a private landlord and too difficult to keep up with laws and regulations.
Newport City Council is keen to support a private rented sector that works in the interests of both tenants and landlords.
We asked what help and support respondents thought that the council should be offering to landlords, with some of the responses including to stop interfering, removing section 24 of the Finance Act and to reduce HMO licence costs.
Have your say
The council will be producing a final report detailing the results of the survey and making recommendations about what can be done to support the private rented sector. In order to help us produce this we would like your views on the initial findings:
- Demographics – how long have you been a landlord? Do you live in Newport? Do you manage your properties?
- Financial issues – how important is your rental income to your household? Have you been impacted or are likely to be impacted by any of the changes detailed above?
- Experience during the pandemic – what was your experience of being a private landlord during the pandemic? Can you relate to the experiences of the landlords that replied to this survey?
- Future of the private rented sector – do you intend to continue being a private landlord? What are the reasons for your decision? Many of the things suggested to help landlords are not in the power of the local authority. What more could the local authority do to support private landlords in Newport? Do you agree with the suggestions made by respondents to this survey?
You can submit your responses to all or any of these questions above by emailing firstname.lastname@example.org by 13 September 2022.