Wildstone, the UK’s largest owner of outdoor digital billboards, claims a threefold rise in enquiries from residential landlords over the past three years.

It’s driven in part by mounting concerns about the Renters Rights Bill, the firm claims.

Wildstone installs its digital billboards on properties and pays property owners a rental fee in return.

Its head of development, Mike Duty, says: “Since the former government published its White Paper on rental reform three years ago, landlord concerns have steadily increased. It’s clear the environment for landlords has become tougher. It’s no surprise then that enquiries to us have tripled in that time. Landlords are starting to view outdoor advertising leases as a practical solution to squeezed margins, offering a secure, long-term additional income stream.

“We are effectively a second tenant. The property owner still has their residential tenants inside, but Wildstone leases the exterior brickwork or a small piece of their land. That income is predictable, usually for 16 to 20 years, which can make a critical difference to landlords struggling with yields.

“We regularly hear that the income is being used to pay off mortgages, cover maintenance or reinvest in other properties. For some, it has been the difference between holding onto an asset or selling it.

“We’ve even had cases where the addition of digital billboard income has been a key factor in a mortgage being agreed as lenders recognise it as guaranteed income. With the sharp rise in interest rates in recent years, some landlords have struggled to remortgage using only rental income as they have been unable to meet lenders’ interest coverage ratio requirements.”

For residential properties, Wildstone claims that “typical payments” range from £4,000 to £6,000 a year. 

Agreements usually run for a minimum of eight years, with longer-term commitments preferred. Wildstone manages planning consent, construction and maintenance of the screens.

Duty continues: “Of the … enquiries we receive each month, around 5% to 10% are deemed suitable for development, depending on factors such as traffic volume, visibility, obstructions, planning regulations and other planned developments.

“The process from enquiry to installation takes about six months if planning goes smoothly. It’s not an overnight fix, but once a screen is up, the landlord has a guaranteed income stream with no additional costs.”