Investors back buy to let despite tax and red tape
Summary
A landlord survey suggests that while many investors still view residential property as a sound long-term asset, confidence in the private rental sector has weakened. Most landlords plan to hold their portfolios steady over the next year, but a notable minority expect to reduce holdings or exit the market, with taxation identified as the main barrier to further investment.
Why it matters
Surveyors working in the residential sector should note the continued caution among landlords, as this can influence rental supply, investor demand and transaction activity. The findings also highlight the growing importance of tax, regulation and possession processes in shaping landlord behaviour and portfolio decisions.
Key points
- 50.6% of landlords still see residential property as a good long-term investment.
- 39.1% are unconfident about the long-term future of the private rental market.
- 62.7% plan to keep their portfolios unchanged over the next 12 months.
- Taxation is the biggest barrier to further investment, ahead of regulation and property prices.
- Traditional single-let property remains the most attractive investment type.
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