Buy-to-let landlords are becoming more frustrated by tax and regulatory changes in the private rented sector, according to fresh research from Accumulate Capital.
The study by the property development firm found that over half - 53% - of buy-to-let investors would have thought twice about purchasing property had they known how regulated the PRS would become.
With almost three quarters - 72% - of landlords adopting the view that existing tax and regulation measures are unfairly weighted against landlords, it comes as little surprise that over two thirds - 69% - believe that the cost of managing their property portfolio has risen considerably in the past five years.
More than a third - 37% - of buy-to-let landlords plan to sell at least one of their properties in 2020, with three in five (61%) blaming increasing regulations and taxes on their decision.
One in five - 21% - respondents plan to instead focus on alternative property investment, like debt and development finance.
Paul Howells, chief executive 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.”