A quarterly report by the Business Development Research Consultants (BDRC)
revealed that a quarter of residential landlords profits dropped in Q3
2009, causing them to either break even or make a loss.

Of those, around 7% made a small loss and a further 1% made a large loss.
Respondents also said that prospects for letting are declining, having
experienced an increase in Q1 and Q2 this year.

In addition, some 19% of landlords said they had decreased their rent
whilst 27% had put it up, with 49% not changing it at all. Despite less
profits, 63% of landlords dont have any plans to increase the rates they
charge their tenants between now and the end of 2009.

The report also contained data on how landlords set rental rates and found
that 21% were looking to cover costs, 15% were undercutting the market, 8%
were leaving it to the letting agent and 6% were charging what the housing
benefit/LHA will pay.

According to BDRC, private landlords continue to enter the market with 20%
of current landlords saying they have entered the market in the last 24
months - the most challenging times since the survey began in 2006.
According to the research, newer landlords are more likely to have entered
the market as a business decision to secure a better financial future or as
a source of income - compared to an average of 55% of established landlords.

Mark Long, BDRC director, said it saw signs of a brighter future for
landlords in 2010.

He explained: "With 2009 characterised as a year of survival for many
landlords, we are starting to see signs of a brighter future into 2010.
Despite the current profitability situation, as shown by the findings in
the latest survey, prospects for rental yields do appear to be improving in
line with our landlords optimism index. The UKs private landlords are a
resilient bunch and will opt for a strategy that allows them to
protect their income and portfolio."

The 12th survey of the BDRC Landlords Panel was carried out in September
2009 and consisted of online surveys with residential property landlords
who owned at least one residential or holiday property in the UK.