THE BUY-TO-LET market remains more challenging for smaller, private landlords than listed corporate landlords, BondMason has found.
The property investment specialist’s research showed a monthly slowdown in investment performance during May for both listed corporate landlords and private landlords in the UK’s residential rental sector.
However, on an annual basis, the return from shares in listed corporate landlords saw a 5.7 per cent increase, while the estimated return achieved by private residential landlords grew by 2.9 per cent over the period.
“The annual investment returns of listed corporate landlords remains resilient against a continuing backdrop of subdued house price growth,” said Stephen Findlay, chief executive of BondMason.
“Whereas private property owners are continuing to be hit by the impact of tax changes and new regulations.
“This trend may continue for the near future as many smaller private landlords are choosing to reduce their property portfolios and sell up. Conversely, we are seeing an increase in the number of corporate landlords entering the market as they fill the gap left by private buy-to-let landlords, and to meet the continuing demand for rental properties in the UK.”
BondMason confirmed last month that it is winding down its peer-to-peer lending offering and pivoting its focus towards a new buy-to-let investment portfolio, which is ISA- and SIPP-eligible.
BondMason BRIX is a market-capitalisation weighted index of listed companies and funds that
own UK residential property for letting.
Findlay told Peer2Peer Finance News that he felt the P2P sector “has a viable future” but blamed an influx of institutional capital for pushing down returns.