New research has revealed that nearly 1m landlords plan to review their buy-to-let portfolios over the next two years with the number planning to sell outnumbering those planning to buy more properties. The findings are from the Nottingham Building Society. Other key findings include:
- The study found nearly two out of five landlords (36%) surveyed will be reviewing their portfolios – the equivalent nationally of around 1m landlords – with 20% selling all or some of their portfolio, whilst 16% aim to buy more properties over the next two years.
- Regulatory issues are the biggest reason for landlords wanting to sell with more than half of would-be sellers interviewed (52%) blaming increasing regulation in the sector while 24% say the end of tax relief on buy-to-let mortgages is driving them to sell.
- The ability to earn a good income from buy-to-let is the main reason for landlords adding properties to their portfolios. Some 83% of those landlords interviewed who plan to buy more properties said this is a key reason for doing so, while 57% believe rising property prices make buy-to-lets a good investment. Around 61% say low interest rates for savings mean property is a better investment.
The research also revealed that millions who have never been landlords plan to buy a property over the next five years. Some 11% of people surveyed with mortgages on their homes or who own them outright are thinking of becoming landlords in the next five years.