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More than half of BTL landlords adversely affected by stringent tax regulations

More than half of buy-to-let landlords interviewed as part of a new study commissioned by secured property lender Fitzrovia Finance said that they have been affected by the recent introduction of tougher tax treatments and tighter bank lending criteria. 

The study found that 54% of the modest sample of 190 landlords interviewed have been negatively affected by the changes, with many selling and reducing their property holdings as a consequence. 

One in five of those surveyed said they have reduced the number of buy-to-let properties in their portfolios, and 15% said they were deterred from acquiring more properties due to the changes.

Of those interviewed that have sold buy-to-let properties over the past two years, the average cash released from the sale was £129,746.    

The study claims that some of these property investors are increasingly turning to property investment platforms as an alternative to investing, although it is worth once again pointing out that just 190 landlords were surveyed. 

Of those that have sold a buy-to-let property, 8% said they used the funds to invest through property debt investment platforms. One in three, or 63 of the landlords interviewed, believe that as the buy-to-let market has become less attractive, they will use property debt investment platforms more.

Brad Bauman, CEO, Fitzrovia Finance, commented: “As the buy-to-let market becomes less attractive, our research suggests that many may increasingly turn to property debt investment platforms for attractive risk adjusted returns but without the hassle of managing  tenants or carrying out costly maintenance.”

Features that would motivate landlords to start investing through property investment platforms

Buy-to-let investors percentage

Attractive secured property lending opportunities

33%

New regulation that will make the sector more transparent and safer

29%

Trust in the company’s management team and track record

28%

Attractive risk -adjusted returns

26%

 

Poll: Do you think property debt investment platforms are a good alternative for landlords who understand the asset class and the risks involved?

PLACE YOUR VOTE BELOW

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