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No sign of ‘mass landlord exodus’ from BTL market

Fears that regulatory changes will pave the way for an exodus from the buy-to-let market may be a little premature, according to Foundation Home Loans.

One year on from the introduction of tougher lending rules for portfolio landlords with four or more mortgaged buy-to-let properties, which made arranging the finances a little more arduous, many investors continue to invest in the buy-to-let sector.

Some people had anticipated a mass exodus of BTL landlords, but this seems to have been an exaggerated view of the market, according to Jeff Knight, marketing director for Foundation Home Loans.


He commented: “A year on from when the Prudential Regulation Authority’s (PRA) rules were introduced, it’s fair to say it hasn’t caused the mass exodus of landlords that some commentators widely expected.

“Naturally, there were concerns among landlords in the run up to the latest PRA rules, and landlords even said they thought it would be harder to obtain finance in the new regime. However, as with many things, it is often the fear of change than the actual change itself which is the issue.”

Recent research by Foundation Home Loans found that one in five - 19% - portfolio landlords intend to remain in the buy-to-let market indefinitely and on average, portfolio landlords expect to remain in the market for 15 years, compared to ten years for their non-portfolio counterparts.

But Knight accepts that there is still adjustment to the new rules going on, as portfolio landlords often need to supply more information and documentation than in the past and with the full impact of PRA rules yet to be felt, which means that there is still some uncertainty.

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    • 26 September 2018 09:55 AM

    Jeff Knight isn't affected nor does he have any skin in the game and non of his friends and families are amongst the 44,000 families who've lost their homes as a result of the early days of S24 where only 25% of this tax is biting. Once it is in its 4th year, hundreds of thousands of evictions will occur as landlords like every other business in the world can't pay tax on the legitimate expenses of running their businesses plus on their profit.
    Maybe Jeff should understand the gravity of this issue for landlords losing their businesses and investments, and their clients the tenants losing their homes before trying to put his name out there amongst the plethora of uneducated idiots that think this is good as it ruins landlords.

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    So if 1 in 5 intend to remain what about the 4 in 5 that are exiting?

  • PossessionFriendUK PossessionFriend

    Just a piece of wrongly interpeted data published for marketing purposes by Foundation Home Loans ! shame.
    As Leon says, the correct interpretation is 80% of Landlords DON'T expect to remain !
    As a famous American would say, ' Fake news '

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    Why is there slump in the housing market? Certainly there aren’t any new landlords entering the field. I changed my mind from buying another property and am just waiting for the fixed mortgage deal to end before I put the property on the market


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