Buy to Let
More than a quarter of landlords plan to sell properties
A survey of mortgage brokers found many of their buy-to-let clients are planning to exit the private rented sector
Brokers say that more than a quarter of their landlord clients plan to sell properties, according to research by broker forum, cherryplc.co.uk.
The survey revealed that 28% of landlord clients are planning to sell properties, as a result of the current challenging buy-to-let environment.
Just over a quarter of landlords will make no changes to their investment in the current climate and 3% intend to buy more properties.
Nearly four in 10 (39) said they plan to increase rents.
Donna Hopton, director at cherry, said: “Recent turbulence in the money markets has impacted all mortgage clients, but buy-to-let has arguably been hit hardest given the detrimental impact that higher rates have on stress testing and the loan sizes available to property investors.
“If you then consider the stream of regulatory and tax changes that landlords have had to deal with in recent years, combined with upcoming EPC requirements, it’s unsurprising that so many are choosing to sell properties.”
Cherry added that there are still many landlords who remain committed to the market.
Mike Cook, chief mortgage officer at MFS, added: “Rising interest rates and the introduction of various regulatory changes in the PRS over recent years has naturally caused some landlords to consider their options. However, we should be wary of overstating the declining appeal of buy-to-let. With huge demand from renters and long-term capital growth on offer, residential properties will continue to attract interest from a wide range of investors.”