FEARS that regulatory and tax changes would pave the way for an exodus from the buy-to-let (BTL) market may be a little premature, according to new research.
A study commissioned by specialist lender Foundation Home Loans found that 18 per cent of landlords expect to remain a landlord indefinitely.
On average, landlords expect to stay in the market for 10 years, the research found, while portfolio landlords – those with four or more properties – expect to stay invested in the market for an average of 15 years.
A number of P2P platforms, including LandlordInvest and Landbay, specialise in providing BTL finance.
“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,” said Jeff Knight, marketing director of Foundation Home Loans.
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“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.”
The Foundation Home Loans research found that landlords in the East of England were more likely to stay in the market than any other region, with 24 per cent saying they had no plans to sell.
Meanwhile, six per cent of all landlords questioned said they only intended to remain a landlord for the next one to two years.