The sixth edition of Kent Reliance’s Buy-to-Let Britain report has revealed that despite the value of the rental sector rising by £68bn in the last year to £1.3 trillion, landlord confidence has fallen from the 44% recorded in the previous quarter.
Just over one in four landlords (27%) saw tenant demand increase in the last quarter – more than saw it decrease – but this was down from the 39% figure of a year ago.
In the first three months of 2017, the number of landlords expanding their portfolios only slightly outnumbered those reducing them.
Some 19% of landlords now expect to reduce their portfolios, while 13% intend to expand.
- Specialist BTL lenders warned they will inherit 'massive' volumes of work
- Liverpool named number one BTL hotspot
- Will a surge of expat borrowers mitigate BTL tax change impact?
Andy Golding, chief executive of OneSavings Bank, said: “A perfect storm of weakening house prices, higher taxes and lending restrictions have knocked investors’ confidence.
“On top of this, investors are now being buffeted by the winds of political uncertainty following the election, and its impact on the economy.
“Uncertainty will pass, but the impact of changes to mortgage tax relief and underwriting standards will leave a more indelible mark on the sector.
“We believe these changes will alter the mix of landlords, creating a more professional and stable sector in the long term.
“There are already some signs of consolidation, with highly geared amateur landlords most likely to leave, and we are also seeing investors take action to protect their margins.”
Leave a comment