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Of the 70% of landlords expecting  the government ‘s interference in the sector, around three quarters (73%) predict that minimum tenancy terms will be introduced. 72% believe that all landlords and properties will be individually licensed and 38% say that rental caps could also be mandatory.

The lender’s research was undertaken by BVA BDRC in January 2020, the findings were taken from 791 online interviews held by the firm. It also asked the landlords would they be in favour of a rental cap with 77% against, 12% may be in favour of it, 9% were undecided and just 2% were behind the introduction of caps.

The interviewees were also asked what they would do if rental caps came into force, 35% said they would raise their rents to the absolute maximum allowance, 33% said they would sell some of their properties, 20% were undecided, 19% would seriously consider leaving the sector altogether, whereas 10% said they would stay the same.

Despite the large numbers of landlords anticipating further interventionist measures from the government.

Now that the Brexit situation has been decided together with the Conservative’s huge majority, the landlords were more positive as the Tories apparently have been friendlier to PRS; however there is widespread concern over the abolishment of Section 21 notices with 53% saying they would be less confident on their portfolios.

34% said they would not buy any further properties, 33% would sell up and leave the sector, whilst 31% would probably sell some of their portfolio.

Jeff Knight, director of marketing specialist mortgage lender, said: “While many landlords look like they’re taking a ‘wait and see’ approach to this government and any anticipated intervention in the PRS and/or buy-to-let market, it’s also noticeable that many believe the status quo is unlikely to hold and there will be action of some kind.

“Interestingly, landlords appear resigned to the introduction of minimum tenancy terms, further action with regards to HMOs and MUBs and individual licensing. And while 38% think a rental cap might be likely, there is very little support for such a measure being introduced, and it will result in landlords having to take action around the rents they charge and whether they can hold onto all their properties.

“There is definitely a degree of uncertainty around what might be coming next, and I suspect many landlords are waiting for this month’s Budget before they make up their minds more fully on whether this is a government which will be more ‘friendly’ to landlords.

“Of those who think there will be intervention, 32% think stamp duty for landlords is just as likely to go up from its 3% extra charge level, as opposed to the 7% who think a cut is likely. In that sense, landlords appear to be bracing themselves for a Budget which may not be in their favour, rather than one which seeks to roll-back on the measures which have undoubtedly impacted on their profitability over the last few years.

“Clearly landlords do not want to see S21 evictions removed as an option for them, but at the same time there appears to be a growing level of confidence in their own businesses, especially for those who own larger numbers of properties. This perhaps taps into the move towards portfolio operators in the sector who can certainly benefit from strong lending options and a highly competitive mortgage market to help them meet their aims and ambitions for their businesses.”