Landlords split over future of traditional buy-to-let
LANDLORDS are split over the financial viability of the buy-to-let sector following a tax clampdown, Octopus Choice claims.
A survey by the peer-to-peer property lender said that landlords are being deterred by extra stamp duty charges and the scaling back of mortgage interest relief.
Its research found that three in five buy-to-let investors want to keep or buy more rental properties, while two in five are looking to sell.
The majority of UK landlords still view it as a money-making asset class but think it will be on the decline in the future.
For those looking to exit the market, with a quarter blaming falling yields or tax changes and a fifth citing cooling house prices.
Another 60 per cent said property management had become a burden and 61 per cent said they undervalued the costs involved.
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Despite the issues, 27 per cent still plan to invest in property compared with a third re-investing in another asset class or cash.
“Brits still have an incessant love affair with bricks and mortar – but the hassle and cost of buy-to-let is a source of growing frustration, and some landlords may find that their once reliable day-to-day income is becoming harder and harder to come by,” Sam Handfield-Jones, head of Octopus Choice, said.
“But this isn’t the case across all parts of the market, with money still to be made from the right property in the right region.”