Landlords Consider Property Investment to Have Long-Term Prospects

Buy to let investors maintain that property is a secure, long term investment, according to new research from buy to let investment platform Property Partner.

Dismissing concerns regarding the impact of changes to mortgage tax relief, 57 per cent of landlords have not changed their views of the buy to let market following the introduction of the change, coupled with last years stamp duty increase.

The survey also discovered that landlords are half as likely to consider risk avoidance as a priority in property investment decisions at a mere 7 per cent in comparison with other investors at 12 per cent. It was said that this was due to confidence in the long term stability of residential property despite political upheaval.

The research also highlighted the fact that since records began in 1972, there has been no five-year period showing a negative total return for investment into UK residential property.

However, despite this, the research found that relatively few investors are considering diversifying into property. A mere 11 per cent of potential landlords believe investing in property is easy. 51 per cent of this group find the prospect of managing tenants to be the main turn-off in relation to buy to let investing.

Chief executive officer of Property Partner, Dan Gandesha, said: ‘This research underscores the confidence being shown in the buy to let sector across the UK. It really highlights that, despite efforts to increase the tax take from landlords, investors continue to be bullish and see property as a secure, long term investment. With no end in sight to the acute shortage in housing stock, there is an inevitability to the continuing upward pressure on prices. In the long term, prices are expected to rise faster than the rate of inflation, economic growth and wages, despite recent political uncertainty.’