More than a third of buy-to-let landlords are planning to reduce the number of homes they rent out or exit the market altogether, according to a survey of 750 landlords.
The research by Accumulate Capital found that 37% of landlords have indicated they intend to reduce their investment in the buy-to-let market by selling at least one property this year.
Of those looking to offload property, 61% said this was in response to the increasing regulations and taxes.
Some 72% of property investors believe existing tax and regulation measures are unfairly weighted against landlords, 63% are not considering expanding their portfolio because of reforms to the PRS that will be introduced from 6th April 2020, such as changes to mortgage interest tax relief and private residence relief.
Another drag for 69% of those surveyed was the fact that the costs of managing their property portfolios had increased “considerably” over the last five years.
More than half - 54% - added that they are prepared to sell properties if further PRS regulation is introduced in the 2020 Budget, scheduled for 11th March.
Paul Howells, CEO of Accumulate Capital, commented: “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market.
“Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them.
“What we might see as a result, is investors selling properties and downsizing their portfolios. Indeed, a considerable number of investors are now looking to alternative real estate investment options instead, such as development finance – these provide ways to access bricks and mortar investment opportunities without the complications or costs of actually purchasing the asset.”