Tougher tax rules and red tape have caused two-thirds of landlords to consider investing outside the private rented sector in future.
New research from FJP Investment reveals that the market has lost its appeal for many, with 68% of multiple property owners reporting that buy-to-let investments have become far less attractive during the past five years.
The survey of 1,004 UK landlords and property investors, of which 344 own two or more properties, found that 71% believe they have been unfairly targeted by the government’s tax reforms and new regulations since 2016.
Two thirds (67%) said they would consider other forms of property investment that didn’t incur the same taxation and complexity as buy-to-let and second home purchases.
More than two fifths (44%) of landlords said they plan to sell one or more of their properties in 2021 although the same number intend to buy a house or flat this year.
However, confidence is high in regard to house prices; more than half (55%) believe prices will rise in the next 12 months, while 54% expect prices to increase by more than 10% between now and 2026.
CEO Jamie Johnson (pictured) says that although property investors are confident house prices will rise, the added cost and complexity of investing and letting out multiple properties means many are looking for other forms of bricks and mortar investment.
He adds: “With the stamp duty holiday extended until the end of June and the UK inching towards an end to lockdown, the next few months will be critical for the property market. Time will tell if there is indeed a mass exodus of investors from the buy-to-let sector, but this new research underlines the fact that there is far less appetite to be a landlord.”
Read more about selling buy-to-let properties.