Landlords

A fifth of landlords intend to stay in buy-to-let for life

Rozi Jones
|
20th August 2018
Landlord Keys 22
"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."

One in five individual and portfolio landlords intend to remain in the buy-to-let market indefinitely, according to research from Foundation Home Loans.

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.

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.

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.

On the flip side, 6% of all landlords questioned said they only intended to remain a landlord for the next one to two years.

Jeff Knight, marketing director at 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.”

Related articles
More from Landlords
Latest from Financial Reporter
Latest from Commercial Reporter