Friday, September 25, 2020
Landlords

One in five UK landlords intend to stay in the BTL market for the long term

Almost one in five landlords in the UK intend to remain in the buy to let business for the long term

Almost one in five landlords intend to remain in the buy to let market in the UK indefinitely, with the same number of portfolio landlords having a similar outlook.

Unperturbed by recent regulatory and tax changes, 18% of landlords said they would expect to remain a landlord indefinitely and 19% of landlords with four properties or more said the same.

This is the same across the age groups with one in 10 landlords aged 18 to 34 intending to continue indefinitely, rising to 17% of those aged 35 to 54 and 20% of those aged 55 and over, according to the latest sentiment research from Foundation Home Loans.

At a regional level, some 24% of landlords in the East of England, more than any other region, said they had no plans to leave the market, a sign of the draw of rental property in the commuter belt. On the flip side, 6% of all landlords questioned said they only intended to remain a landlord for the next one to two years.

Portfolio landlords expect to stay invested in the market for an average of 15 years, compared to 10 years for non-portfolio landlords.

The research also found that 20% portfolio landlords have been a landlord for 16 to 20 years, showing that, with enough time to develop experience, monitor the value of properties and even make renovations to their offerings, the buy to let market can prove worthwhile for this group especially.

Marketing director of Foundation Home Loans, Jeff Knight said there have been ripples of concern that a mass exodus of landlords is expected, and certainly the changes introduced are a handful to deal with if not addressed in the right way.

But, Knight explained, this is clearly an exaggerated view of the market. With so much interest in investing in the long term, it is therefore imperative that newer landlords are sufficiently supported to avoid any knee-jerk exits.

This is particularly the case for portfolio landlords as diversification is key to maintaining cash flow. Seeking the help of a financial adviser will help landlords navigate these hurdles, professionalise their approach and ultimately ensure they can remain in the market.

Important:
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Leave a Reply

nine + 14 =