One in five landlords intend to remain in the buy-to-let market indefinitely, with the same number of portfolio landlords foreseeing the same, the latest sentiment research from Foundation Home Loans reveals.
Unperturbed by recent regulatory and tax changes paving the way for exit and indications of a ‘mass exodus’, 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: one in ten landlords aged 18-34 intend to remain indefinitely, rising to 17% of those aged 35-54 and 20% of those aged 55 and over.
At a regional level, a quarter (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.
What’s more, today’s portfolio landlords expect to stay invested in the market for an average of 15 years, compared to 10 years for non-portfolio landlords. One in five (20%) portfolio landlords have been a landlord for 16-20 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.
Jeff Knight, marketing director, Foundation Home Loans, 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 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 cashflow. 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.”