Research from Kensington Mortgages' BTL Barometer indicates a notable reduction in limited company landlords' plans for portfolio expansion. Just 11% now intend to grow their property holdings over the next year, a decrease from 38% recorded in the spring.
The survey also revealed a sharp decline in the perceived ease of accessing buy-to-let mortgage finance, falling from 74% to 42%. Most landlords, 77%, now plan to maintain their current portfolio size, compared to 53% previously.
Despite fewer landlords planning expansion, 80% remain confident about the market's prospects for the next 12 months, though this is down from 89% in April. Tenant demand has become the primary factor influencing confidence, replacing interest rates.
Regulation continues to be a concern, with three-quarters of landlords expecting the regulatory environment to become more challenging. Almost all respondents stated that potential reforms, including proposals for council tax and stamp duty, would influence their future property investment plans.
Investment in existing properties has continued, with 99% of those surveyed making improvements over the past year. Energy efficiency requirements also influence future investment decisions for 96% of landlords.