Being a landlord is a long term venture for almost one in five buy to let and portfolio landlords.
Despite recent regulatory and tax changes, 18% of landlords expect to remain in the private rented sector indefinitely, while 19% of landlords with four properties or more said the same.
However, the latest sentiment research from Foundation Home Loans appears to show some generational disparities, with just one in 10 landlords aged 18 to 34 planning a long term future in the sector compared to 17% of those aged 35 to 54, and 20% of those aged 55 and over.
Meanwhile, at a regional level, landlords surveyed in the East of England were most keen to build a long term future in the sector, with 24% saying they had no plans to sell up. This can be attributed to the draw of rental property in the commuter belt. Meanwhile, 6% of all those surveyed revealed plans to leave the sector in the near future.
The survey also shows that portfolio landlords expect to have some involvement in the market for 15 years on average, while single property landlords planned to let their property for an average of 10 years.
Furthermore, the research also points to the experience and expertise accrued by portfolio landlords in understanding market value and how to profit efficiently, with 20% having been operating within the sector for 16 to 20 years
‘There have been ripples of concern that a mass exodus of landlords is expected, and certainly the changes introduced are a handful to deal with if not addressed in the right way,’ said Jeff Knight, marketing director of Foundation Home Loans.
‘But this is clearly an exaggerated view of the market. With so much interest in investing in the long term, it is therefore imperative that newer landlords are sufficiently supported to avoid any knee-jerk exits,’ he explained.
‘This is particularly the case for portfolio landlords as diversification is key to maintaining cash flow. Seeking the help of a financial adviser will help landlords navigate these hurdles, professionalise their approach and ultimately ensure they can remain in the market,’ he added.