Sentiment Positive from Buy to Let Property Investors

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One in five buy to let investors intend to remain indefinitely in the buy to let sector according to the latest sentiment research from Foundation Home Loans.

The sentiment research figures were the same for the number of portfolio landlords in the sector. Landlords appear unconcerned by recent tax and regulatory changes. 18 per cent said that they would expect to remain landlords indefinitely while 19 per cent of those with four or more properties said the same. When broken down by age, one in ten landlords aged 18-34 intend to remain indefinitely, a figure which grows to 17 per cent of those aged 35-54. 20 per cent of those aged 55 or over expect to remain in the buy to let sector indefinitely.

Regionally, a quarter, or 24 per cent, of landlords in the East of England said they had no current plans to leave the market. This is more than any other location in the UK. This demonstrates the attraction of rental property located on the commuter belt.

In contrast, only 6 per cent of landlords questioned said that they intended to remain a landlord for just one or two more years.

The sentiment survey also showed that a more long-term commitment was evident from portfolio landlords. Landlords with a large number of properties said that they were likely to stay in the buy to let sector for an average of 15 years in comparison with the 10 years for non-portfolio landlords. Furthermore, 20 per cent of portfolio landlords have already been a landlord for 16-20 years, demonstrating the benefits of spending time developing experience.

Jeff Knight, Marketing Director at Foundation Home Loans, said: ‘There have been ripples of concern that a mass exodus of landlords is expected, and certainly the changes introduced are a handful to deal with if not addressed in the right way. But this is clearly an exaggerated view of the market. With so much interest in investing in the long-term, it is therefore imperative that newer landlords are sufficiently supported to avoid any knee-jerk exits. This is particularly the case for portfolio landlords as diversification is key to maintaining cashflow. Seeking the help of a financial adviser will help landlords navigate these hurdles, professionalise their approach and ultimately ensure they can remain in the market.’