Research by The House Crowd reveals that two thirds (66%) of UK property investors predict more turbulence from this month's Budget announcement - with a fifth already planning to pull out of buy to let this year.
Investors feel increasingly under attack, with legislation such as the EU Mortgage Credit Directive and increase in stamp duty on buy to let properties, coming into force this March and April respectively. Over 70% of those surveyed believe that these changes will have a negative impact on their investments, with smaller investors set to be hit hardest by ever tightening profit margins. 43% feel that the government is trying to squeeze small investors out of the market altogether.
Over half (54%) of landlords indicated that they do, however, support tighter regulation from the Bank of England to clamp down on rogue landlords.
Despite sentiment towards traditional buy to let turning sour, it appears that investors still view bricks and mortar as the best way to secure their futures. The UK-wide survey revealed:
A third (33%) still prefer to invest their money in property as it is a tangible asset
A third (38%) think landlords need to be looking at smarter ways to invest
Over half (57%) think buy to let will remain a strong option as there is a continued housing shortage in the UK
Frazer Fearnhead, Founder and CEO of The House Crowd, said: “With house prices continuing to rise and the property market outperforming the FTSE, bricks and mortar presents a strong investment option.
Despite this, new legislation is making buy to let ever less accessible for the small landlords who want to invest in something sensible and tangible to secure their futures.
As many of the landlords surveyed identified - it's time for beleaguered investors to be looking at their options. February was our strongest month yet, as investors turn to property crowdfunding to achieve the returns that property offers minus the stress and risk of being a landlord.
Times are hard for the UK's small property investors – but it's time to adapt, not despair.”