The government’s decision to introduce a number of measures to curb the growth of private landlords has prompted concern that the buy-to-let windfall may be coming to an end.
The number of people actively investing in the buy-to-let market has fallen in recent months, and many experts fear that other existing landlords are making plans to exit the market, as they seek to avoid the government’s attack on the private rented sector.
But despite the punitive tax rises being imposed on the PRS, the indications are that bricks and mortar will remain a safe long-term investment for the 2 million or so buy-to-let landlords in Britain, which is why 59% of landlords surveyed are still confident in renting out property as a source of income, according to a new poll of 500 buy-to-let landlords.
The research by property investment consultancy Knight Knox found that just 11% of landlords have lost confidence in but-to-let, while 30% are unsure.
What’s more, half of respondents intend to add to their existing buy-to-let portfolio within the next five years.
Andy Phillips, commercial director at Knight Knox, said: “The results of our survey would suggest that, despite ostensibly damaging changes to the market over the last few years, landlords remain positive about the returns this asset class can generate. Bricks and mortar is likely to remain one of the most stable investment options and has so far weathered the changes brought in by new legislation.
“Close to six million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With this sort of opportunity, and with property prices continuing to rise, investors could potentially benefit from both regular rental income over the years and capital appreciation when the time comes to sell.”