The Government’s implementation of a number of regulation changes aimed at curbing the rise of private landlords has left many concerned that buy-to-let investment could fizzle out.
As a result of the changes, the number of people investing in the sector has slipped over recent months, with experts forecasting that more landlords will exist the market in the near future.
Despite the tax assault on the private rental sector, the fact remains that bricks and mortar provide a safe long-term investment for savvy landlords.
A new survey of 500 buy-to-let landlords from Knight Knox reveals that 59% are still confident in renting out buy-to-let property. Surprisingly, only 11% said they had lost confidence in buy-to-let, while 30% are unsure.
In addition, half of respondents to the survey said that they intend on adding to their portfolio in the next five years.
Andy Phillips, Commercial Director at Knight Knox, noted: ‘The results of our survey would suggest that, despite ostensibly damaging changes to the market over the last few years, landlords remain positive about the returns this asset class can generate. Bricks and mortar is likely to remain one of the most stable investment options and has so far weathered the changes brought in by new legislation.’
‘Close to six million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With this sort of opportunity, and with property prices continuing to rise, investors could potentially benefit from both regular rental income over the years and capital appreciation when the time comes to sell.’