Most landlords plan to retain their properties over the coming year in a sign of renewed confidence in the private rented sector despite mounting regulatory pressures.
New research from buy-to-let lender Landbay of landlords with portfolios totalling around 3,000 properties, carried out in May, found that 58% have no plans to sell in the next 12 months.
That marks a sharp rise from 47% in the same survey last year, which was conducted immediately after the Autumn Budget.
Smaller landlords with fewer than four mortgaged properties showed the strongest intention to hold onto assets, accounting for almost a third of respondents. Among larger landlords with four to ten properties, nearly a quarter said they would not sell.
TIGHTER RULES
Only 15% of landlords plan to dispose of up to 10% of their portfolio, while 4% expect to sell a quarter. Fewer than one in ten intend to sell half of their holdings.
The prospect of tighter rules remains the biggest driver for those looking to sell. Some 35% of would-be sellers cited upcoming regulation such as the Renters’ Rights Bill as the primary factor, followed by taxation at 31%. In last year’s survey, landlord taxation was a significantly bigger concern, flagged by more than half of respondents.
At the same time, buying intentions have rebounded. More than half of landlords (52%) said they intend to purchase additional properties in the coming year, almost double the 27% recorded last year.
HUGE WIN
Rob Stanton, sales and distribution director at Landbay, said: “In the face of increasing operating costs and the threat of new legislation, this commitment from landlords to stay put is a huge win for the PRS and for renters all over the country – especially when you consider the massive role rented accommodation plays in the UK’s housing mix.
“We know this isn’t the story for all landlords, and while selling is a natural part of developing a successful portfolio, there are still those just looking to scale back.
“As a sector, we absolutely need to get behind these landlords and give them the confidence to not just stay put, but to expand and succeed.”
The research was conducted before reports emerged of potential Treasury plans to introduce National Insurance contributions on rental income – a measure that, if confirmed, could once again test landlords’ appetite to remain in the market.
