4^th Nov 2018

Good news, in spite of the Brexit 'doom and gloom', is that nearly 80% of buy-to-let investors are going to buy more properties in the next twelve months which is approximately 1.95 million landlords.

This positive forecast is made by an investors' advice and forum website and claims that an overall majority of landlords plan to add at least one new property next year.

70% said they will still go ahead with their planned property purchases even if a no-deal Brexit happens.

Rob Dix, co-founder of the investor forum, said: “There’s been so much talk of a mass exodus of landlords and the death of buy to let, it’s easy for some would-be landlords or, indeed, tenants, to believe the rental market is on its knees.

“However, it’s clear from our survey that landlords are far from retreating from the market.”

Another good piece of news is that 84% of landlords said they had no intensions of selling any of their properties over the next three years. 66% also stated that even if the government decided to 'punish' the sector with further tax liabilities they would still refuse to quit the market.

There have been grave concerns being voiced by many that landlords will be leaving the sector in droves following the tax relief system changes, the stamp duty increase, and further regulations.

If lenders' policies were to remain the same in that they would not allow lending if properties were to house benefit claimants, 82% said that would have to evict tenants if they fell into rental arrears and a faster method to do this must be introduced.

Other measure would be taken as 69% of landlords said they would have no other alternative than to increase the rent and 59% said the government would have to introduce financial incentives.

Dix continued: “Getting good long-term tenants is the goal for any landlord so it’s not surprising that less than 9% of landlords would be against this policy regardless of any concessions.

“However, landlords obviously need to be protected too so it’s only natural that those operating in the sector are calling for some reassurance.”

37% of landlords said when asked what has needed to 'support mandatory licensing, that all local council schemes should be done away with, except HMO licences, and 43% said that the annual national licence should not be any more than £100.

Around 65% said it is of the utmost importance for the sector that proper structures and processes be introduced to get rid of 'rogue' landlords. They want substantive proof of non registration to be backed up by a foolproof detection system which was then enforced.

Dix said: “It’s telling that the most popular wish for licensing – more popular even than a tax break – is some reassurance that it will actually work.

“The majority landlords take pride in providing a good service, and are as keen as anyone for the rogues who give the industry a bad name to be pushed out.

“Taken as a whole, the results of our survey show that the caricature of landlords fleeing the sector when the going gets tough isn’t in line with reality. Most landlords are in it for the long term and have sound business plans – they don’t view property as a get-rich-quick scheme.

“The Armageddon-style headlines in much of the press over the last two years in no way reflect the way landlords are feeling. Buy-to-let is far from dead. Are investors operating in a new landscape? Certainly. Is it one they’re unable to navigate successfully? Absolutely not.”

News Archive »