A survey by mortgage platform Landbay suggests the number of private sector landlords who plan to purchase new rental properties has increased, with 52% of respondents saying they intend to buy within 12 months, compared to just 27% a year ago.
The survey also reveals that more landlords intend to keep hold of the buy-to-let properties they already own, with 58% of respondents saying they have no intention to sell, up from 47% last year.
The survey of buy-to-let landlords with a total of 3,000 privately rented properties is ‘hugely encouraging’, Landbay sales and distribution director Rob Stanton said, and demonstrates how robust the sector is.
He added:
“In the face of increasing operating costs and the threat of new legislation, this commitment from landlords to stay put is a huge win for the PRS and for renters all over the country – especially when you consider the massive role rented accommodation plays in the UK’s housing mix.
“We know this isn’t the story for all landlords, and while selling is a natural part of a developing a successful portfolio, there are still those just looking to scale back. As a sector, we absolutely need to get behind these landlords and give them the confidence to not just stay put, but to expand and succeed. As a lender in this space, we take this role really seriously – whether it’s launching and expanding our innovative product transfer offering or providing competitive rates and a broad product range to help landlords of all sizes when the timing is right to scale their portfolio.”
More than a third (35%) of the landlords who said they did plan to sell properties cited the prospect of upcoming regulation, including the Renters Rights Bill, as the primary reason. Last year, taxation was the most popular reason for selling, with over half (51.4%) saying it was behind their decision to sell. This year, just 31% of landlords attributed the reason for selling to taxes.
However, Landbay acknowledged the survey took place prior to leaks of potential Treasury plans ahead of the Autumn Budget which could see landlords paying National Insurance (NI) on their rental income.
