A recent survey commissioned by Benham and Reeves suggests that many private landlords remain committed to buy-to-let, with 50.6% viewing residential property as a good long-term investment. However, only 3.9% plan to expand their portfolios over the next year, while 13% expect to reduce their holdings and 14.2% intend to leave the rental market entirely.
Confidence in the wider private rented sector is relatively weak, with 39.1% of landlords feeling unconfident about its long-term future. Pressure on profitability is also expected to continue, as 38.9% anticipate a fall in buy-to-let profits over the next year.
Taxation emerged as the biggest obstacle to further buy-to-let investment, identified by 28.3% of landlords. The Renters’ Rights Act and wider regulation followed at 15.1%, with property prices ranking third at 12.6%. The study also suggests that tax changes could have the greatest influence on future investment, with 36.9% of landlords stating that more favourable taxation would encourage them to buy additional properties.