More than half of landlords in England still consider residential property a strong long-term investment, according to a Benham and Reeves survey. Despite this, a significant majority do not intend to expand their portfolios in the coming year.
The survey found that 51% of landlords remain positive about property as a long-term investment. However, 63% plan to keep their portfolios at their current size, with only 4% expecting to acquire more properties. In contrast, 13% plan to reduce their holdings, and 14% intend to exit the sector entirely.
Profit expectations are also under pressure, with 40% of landlords anticipating a fall in buy-to-let profitability over the next 12 months, compared to 8% who expect a rise.
Marc von Grundherr, a director at Benham and Reeves, noted that landlords have not lost faith in property but are operating in a less attractive environment. Almost eight in 10 landlords believe being a landlord is less appealing than five years ago. Taxation was identified as the biggest barrier to further investment by 28% of respondents, ranking ahead of the Renters' Rights Act and wider regulation (15%).
When asked what would encourage them to buy more properties, 37% chose more favourable landlord taxation, while 14% cited lower Stamp Duty.