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Survey Shows 64% of Buy-to-Let Landlords Plan to Keep Properties Despite Market Challenges

Landbay’s recent quarterly survey reveals that 64% of buy-to-let landlords do not plan to offload any of their properties in the forthcoming year.

The strongest retention sentiment was expressed by landlords owning single properties, at 75%, and those with smaller portfolios of two to three properties, at 69%. Interestingly, a similar percentage of landlords with portfolios exceeding 20 properties (65%) share the same intentions.

On the other hand, the survey showed a slight increase in landlords planning to sell some of their properties, rising to 30% from 28% in the previous study. Only a small proportion (6%) plan to dispose of all their holdings, with responses distributed evenly among small, medium, and large landlords.

Not surprisingly, the principal reason for landlords considering selling is the surge in interest rates, cited by 60% of respondents – a rise from 45% in the prior survey. Additionally, nearly half (45%) stated that their rental income does not cover their mortgage expenses – a substantial increase from 28% in the Q4 2022 survey. Other reasons for selling included landlord taxation (47%), the costs associated with proposed EPC requirements (40%), and concerns over tenant eviction (34%).

These insights form part of Landbay’s most recent quarterly survey, which strives to understand the attitudes and intentions of current landlords. The survey covers a range of subjects to identify the primary issues facing the sector and landlords’ views on the future of the buy-to-let market.

Paul Brett, Landbay’s Managing Director of Intermediaries, commented: “Although some landlords are indeed trimming their portfolios in the current climate, our latest data shows that most are not planning any reductions. This is encouraging news for the broader housing market, which heavily depends on rental supply – after all, one in five houses in England and Wales relies on the Private Rented Sector (PRS) for housing.

“As a dedicated buy-to-let lender, we are continually seeking innovative ways to support not just buyers, but landlords looking to remortgage. Given the high level of maturation in the buy-to-let market this year, many will be evaluating their options in a higher interest environment.

“For those pondering selling, we’d always recommend consulting with a broker to identify the most beneficial course of action, especially when lenders like us are ready to innovate and find solutions to support landlords in all circumstances.”


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