One in five (20 per cent of) landlords plans to reducing their buy to let holdings according to a new survey.
The Property Academy Landlord Survey 2023 result contrasts with that of a year ago, when just 13 per cent of landlords were going to reduce BTL holdings.
The burden of legislation is the most common reason for selling up – cited by 22 per cent, with a further 17 per cent saying buy to let was now ‘too much hassle’ – the latter typically indicating a problem with the tenant. For another one in five, retirement or equity release prompted the sale.
The survey found that those landlords selecting which property to sell were driven primarily by lease and dates, especially if they wanted to sell with vacant possession.
At the other end of the buy to let investor scale, two thirds of landlords had no intention of changing their investment portfolio in the next one to two years, and the bigger the portfolio, the more likely the landlord is actually likely to be planning expansion – supporting the view that the sector is shifting away from small amateur landlords to a more professionalised sector.
Equally, 22 per cent of those planning to invest more were planning for their pension. Only five per cent cited attractive yields, even though rising rents have driven yields upwards in many parts of the country.
Elsewhere in the survey, it appeared buy to let landlords had relatively low awareness of Build To Rent. Only 31 per cent knew of BTR, slightly up on the 2022 survey result of 26 per cent.
So far, BTR represents only two per cent of all UK private rental stock, but the survey claims that some experts believe it could eventually make up 40 per cent of private rental homes, and it suggests that if small landlords continue to sell, the government will be under increasing pressure to support BTR growth.
Perhaps most surprising of all, almost 40 per cent of investors responding to the survey claimed to know nothing of the Renters Reform Bill. For those aware of it, there is significant concern about the potential negative impact.
By far the greatest concern was the loss of Section 21 rights to reclaim possession of the property. Well down the list of priorities was the prospect of a legally enforceable ‘Decent Homes Standard’ applied to the private rental sector as well as social housing.
More details of the survey – results of which are being sold by the Property Academy – can be found here.
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