23 Feb 2023

Buy to Let remains investment of choice

BY John Gebbels  

Research conducted by Leaders Romans Group, and published in Property Industry Eye this morning, offers a positive indication from a selection of Buy to Let Landlords on the subject of exiting the sector. 

New legislation, combined with tax relief withdrawals, higher mortgage costs and a consistently strong sales market have made some Landlords think twice as to whether Buy to Let remains a viable long term investment option.  

"Earlier this month, LRG surveyed 271 landlords across its country-wide estate agency brands, from those with a single investment property (46% of the sample) to those with ten or more (4%). It found that only 7% of landlords plan to exit the BTL market in the next year and 12% plan to reduce their portfolio. In contrast, a considerable majority (71%) planned to maintain their portfolio size and 10% planned to expand it"

OXON Property Search's John Gebbels has also commented:

"I have always promoted the long term benefits of property investment. It is though neither a passive investment, and nor should it be viewed as a 'get rich quick' scheme. 

Demand for rental property remains extremely strong, and as a result Landlords are not experiencing costly void periods. Whilst some Landlords might feel disillusioned by a slightly tougher financial climate, many are also struggling to see where they might more successfully deploy their investment funds.

The focus of Government will hopefully now turn to creating an improved security of tenure for private renters, and to ensuring all new energy efficiency requirements are achieved by implementing a reasonable and timely programme of introduction. 

A private rented sector where tenants have access to a wide ranger range of well maintained, energy efficient homes with secure long term tenure, and where Landlords can profit in the long term, appears to me to suit everybody"