Landlords provide key investment in local economies

At a time of potential changes to regulations bringing challenges for landlords, it’s welcoming to see the positive impact landlords are making to the economy.

Our new research¹ reveals the financial boost that landlords are contributing to local economies, with 79% choosing to use local tradespeople for maintenance on their properties. This means that on average, £6,003 a year is spent by each landlord on local services.

Supporting local economy

The most common service that landlords look for locally are electricians (52%), plumbers (50%) and handymen (34%) to help them deal with ongoing maintenance issues with their rental properties.

Landlords told us that the main reason they use local services is a desire to support the local economy (37%), and others said they trust local services (34%). Almost a third (32%) of landlords said local tradespeople provide a deeper insight into the local area and , in turn, can give them better advice.

If one of your clients is looking to find a someone locally to work on their property, you can point them towards our blog with tips on finding the right tradesperson.

Challenging markets

Our research¹ also showed that landlords are also feeling the bite of the challenging economic environment and many are planning accordingly. Over half of landlords (59%) said they are looking to downsize their portfolio due to a combination of factors, including high interest rates, falling house prices, regulation changes and cost of living pressures. Almost two thirds (63%) said they are finding it harder to be a landlord this year compared to 12 months ago.

Remaining positive

Despite the difficulties faced, it’s clear to see the positives that landlords can bring to the economy. Demand for rental accommodation is high, with nearly three quarters (73%) of landlords said they have seen an increase in tenant demand for their property. Similarly, 71%² of private renters said they feel the private rental sector is essential to meet the UK’s housing demand.

Jon Cooper, head of mortgages at Aldermore, said:

“Landlords remain absolutely vital to addressing the UK’s housing demand. Our data shows they’re generous contributors to their local economies as well. Whilst they sometimes get a bad press, there are so many good landlords out there making a really positive difference.”

For more updates from Aldermore visit:

¹ Research conducted, on behalf of Aldermore bank, by Opinium between 4 – 9 November 2023, with 500 UK Private Renters

² Research conducted, on behalf of Aldermore bank, by Opinium between 6 – 15 November 2023, with 2,000 UK Private Renters