Landlords are less confident than they were a year ago, with that confidence significantly shaken by the Renters’ Rights Bill.

Savills’ report on landlord sentiment in 2024 reveals that 82% report a reduction in confidence, citing the ability to make a profit as one of their top concerns. This is likely to be felt most keenly by mortgaged landlords who are carrying debt in a higher interest rate environment, or those whose assets require maintenance or refurbishment.

Unsurprisingly, the upcoming legislation was ranked highly, particularly the abolition of Section 21, although Savills reports that many landlords are now clearer on how this will impact the market.

Inheritance tax

As announced in the Autumn Budget, longer-term changes to inheritance tax were also noted as a concern, particularly for those landlords holding property as a longer-term investment. Meanwhile, changes to Energy Performance Certificate requirements and increased additional stamp duty land tax surcharge on second home purchases – also announced in the Budget - were ranked as a worry, although to a lesser extent.

Savills expects increased regulation to limit rental supply over the coming year. However, it believes the impact will depend on the timing of these regulatory changes and how they are implemented.

It adds: “While our survey suggested the appetite for future investment remained muted, plans to dispose of property were more varied and are likely to depend on individual landlords’ circumstances.

"Therefore, we do not expect a mass exodus from the sector despite ongoing uncertainty. And, for landlords taking a longer-term view, our latest five-year forecasts remain robust.”