One in five buy-to-let landlords have reduced the number of buy-to-let properties in their portfolios as a result of recent tougher tax treatments and tighter bank lending criteria according to a new survey.
Secured property lender Fitzrovia Finance has found over half (54%) of buy-to-let landlords said they have been affected by the changes while 15% said they were deterred from buying more properties.
Brad Bauman, chief executive at Fitzrovia Finance, said: “Property debt investment platforms are a good alternative for landlords who understand the asset class and the risks involved.
“As the buy-to-let market becomes less attractive, our research suggests that many may increasingly turn to property debt investment platforms for attractive risk adjusted returns but without the hassle of managing tenants or carrying out costly maintenance.”
Of those interviewed who have sold buy-to-let properties over the past two years, the average cash released from the sale was £129,746.
In addition, some of these property investors are reportedly turning to real estate investment platforms as a good alternative to invest.
Of those that have sold a buy-to-let property, 8% said they used the funds to invest through property debt investment platforms.
One in three believe that as the buy-to-let market has become less attractive, they will use property debt investment platforms more.