The vast majority of buy to let investors plan to increase their portfolios over the next twelve months, despite the uncertainty of Brexit and other potentially challenging government measures.
A survey by investor forum and advice website, The Property Hub, has found that almost 80 per cent of landlords plan to increase their portfolios over the next 12 months. This equates to around 1.95 million investors.
The new survey found that most landlords plan to purchase at least one more property next year, with 70 per cent stating that even a no-deal Brexit will not put off their plans.
Buy to let investors also overwhelmingly confirmed in the survey that the mass exodus predicted from the private rental sector will not happen, with 84 per cent saying that they had no plans to sell properties, and 66 per cent confirming that even if the government were to announce further tax measures – such as restricting interest relief for companies, they still wouldn’t be selling up.
Co-founder of The Property Hub, Rob Dix, commented: ‘There’s been so much talk of a mass exodus of landlords and the death of buy to let, it’s easy for some would-be landlords or, indeed, tenants, to believe the rental market is on its knees. However, it’s clear from our survey that landlords are far from retreating from the market.’
The government proposal for mandatory 3-year tenancies is also not putting off buy to let investors.
When asked what would need to happen in order for them to support this policy 82 per cent said they’d need a way to remove tenants who fall into rent arrears that is faster than the current fault-based method, 69 per cent said the ability to increase rent would need to be given, and 59 per cent said there’d need to be tax incentives, like the ability to deduct more mortgage interest.
Less than 9 per cent of the investors polled said they would oppose the policy regardless.
Mr Dix commented: ‘Getting good long-term tenants is the goal for any landlord so it’s not surprising that less than 9% of landlords would be against this policy regardless of any concessions. However, landlords obviously need to be protected too so it’s only natural that those operating in the sector are calling for some reassurance.’
Source: Residential Landlord