Landlord confidence bullish despite higher buy-to-let taxes

A number of landlords remain confidence about the buy-to-let sector despite tax hikes hitting the private rented sector, research shows.

More than half – 57% – of landlords have not changed their view of the buy-to-let market despite April’s cut in mortgage tax relief and last year’s stamp duty increase, with many buy-to-let investors continuing to focus on long-term growth over tax efficiency, according to a new study by buy-to-let investment platform Property Partner.

The survey found that many investors seeking risk avoidance choose to invest in property because they feel assured the long-term trend will continue with residential proving its stability despite political upheaval.

Since records began in 1972, there has been no five-year period showing a negative total return for investment into UK residential property.

Despite this bullishness about UK property over the medium term, Property Partner’s experts are surprised at how few investors are diversifying into property.

Just 19% of investors view property as a good way of diversifying their assets, and that may be because just one in 10 would-be landlords believe investing in property is easy, with just over half – 51% – of those deterred by the prospect of having to manage tenants.

Dan Gandesha, founder and CEO at Property Partner, said: “This research underscores the confidence being shown in the buy-to-let sector across the UK. It really highlights that, despite efforts to increase the tax-take from landlords, investors continue to be bullish and see property as a secure, long term investment.

“With no end in sight to the acute shortage in housing stock, there is an inevitability to the continuing upward pressure on prices.

“In the long-term, prices are expected to rise faster than the rate of inflation, economic growth and wages, despite recent political uncertainty.”

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