Almost a million landlords intend to review their buy-to-let (BTL) property portfolios in the year ahead.
According to a new study by Nottingham Building Society, the number of landlords planning to sell will soon outnumber those planning to buy more properties, as the BTL market becomes less hospitable to new entrants.
36 per cent of landlords surveyed by Nottingham Building Society said that they will be reviewing their portfolios this year, with 20 per cent aiming to sell some or all of their portfolio. Just 16 per cent of landlords intend to buy more properties over the next two years.
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More than half (52 per cent) of landlords who intend to sell up said that increased regulation was behind their decision. A quarter (24 per cent) said that the end of tax relief on buy-to-let mortgages is driving them to sell.
“Our research suggests sellers currently outnumber buyers in the buy-to-let market with regulatory issues and tax changes among the reasons persuading landlords to pull out of the market,” said Denise Wells, head of mortgage operations at the Nottingham Building Society.
“However, it remains the case that there are potentially strong returns to be earned in the buy-to-let market and we continue to see landlords buying rental properties whilst our research indicates that many more potential landlords are considering going into the market too.
“Whether landlords are buying or selling it is crucial they get the best possible advice on their finances and source the most competitive mortgages.”
Among those landlords who said they intended to increase their BTL portfolio, 83 per cent said that they were driven by the ability to earn a good income from rental properties. 57 per cent believe that rising property prices make BTL property a good investment, while 61 per cent said low interest rates for savings mean property is a better investment.
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