ONLY a fifth of property investors would add to their buy-to-let portfolio over the next 12 months, research claims.
A survey of 5,000 buy-to-let investors, by lettings agent Benham and Reeves, assessed investor sentiment in the property sector amid tax and regulatory changes.
The majority, 83 per cent, said they were unlikely to sell up, but just 21 per cent said they consider investing in a property in the next 12 months.
Half said they would consider expanding within the next five years.
Despite this uncertainty, the research found that 73 per cent of those asked considered property is still the best, least volatile long-term investment when compared to all other asset classes.
More than a third, 37 per cent, of investors felt very confident that they will see an adequate return on their portfolio over the next 10 years, with a further six per cent stating they were extremely confident and 51 per cent not as confident.
“The government has really gone to war with buy-to-let investors of late and a consistent string of detrimental changes to the sector through stamp duty increases, tax relief changes and a ban on tenant fees has had the desired impact of denting industry sentiment and dampening appetite for future investment due to a reduction in profitability,” Marc von Grundherr, director of Benham and Reeves, said.
“However, for the institutional buy-to-let investor, this is but a mere blip on a much longer timeline and the overwhelming overtones are that while Brexit poses a challenging obstacle for the immediate future, the market remains the investment option of choice with many confident on a return further down the line.
“This is a testament to the durability of buy-to-let bricks and mortar in the UK as, despite a government-backed clamp down, it remains a lucrative business and one that continues to gain the backing of those that are on the frontline.”