New research from FJP Investment reveals that the buy-to-let market has lost its appeal to UK property investors.
The property investment company surveyed 1,004 UK property owners, including 344 landlords. The results show that 68% of multiple property owners believe buy-to-let investments have become far less attractive over the past five years.
71% of landlords feel the Government has unfairly targeted them through tax reforms and new regulations. 67% said that in the future they would consider other forms of property investment that do not incur the same taxation and complexity as buy-to-let and second home purchases.
44% of property investors said they plan to sell one or more of their properties in 2021. However, the same number (44%) stated they intend to purchase a house or flat this year. 55% are confident that UK house prices will rise over the coming 12 months and 54% expect prices to increase by more than 10% between now and 2026.
Jamie Johnson, CEO of FJP Investment, said: “After years of reform and regulation, the appeal of buy-to-let investments is clearly on the wane. Tellingly, property investors are confident house prices will rise, with the added cost and complexity of investing and then letting out multiple properties meaning that people are seeking alternative forms of bricks and mortar investment.
“With the stamp duty holiday extended until the end of June, and the UK inching towards an end to lockdown, the next few months will be critical for the property market. Time will tell if there is indeed a mass exodus of investors from the buy-to-let sector, but this new research underlines the fact that there is far less appetite to be a landlord.”