Nearly three quarters (72%) of buy-to-let investors have claimed that legal changes to the sector this year will have a negative impact on their investment.
A fifth of investors are not prepared to deal with the numerous new regulations, and have instead vowed to sell their buy-to-let properties in 2016, according to latest research from The House Crowd.
Property investors have become concerned that legal changes such as the Mortgage Credit Directive and the increase in stamp duty on buy-to-let properties, coming into force this March and April respectively, will hit investors hard.
The findings from a survey of property investors also revealed that half of their plans for retirement are now at risk, and over a third think landlords should look at newer, smarter ways of investing in property.
The survey also unearthed that 43% of landlords feel that the government is trying to squeeze out small-time investors, instead protecting wealthier landlords with multiple properties.
Frazer Fearnhead, founder and CEO of The House Crowd, commented: “These new regulations are putting increasing pressure on those who own perhaps two or three properties, making it very difficult for smaller landlords to remain in the buy-to-let sector.”
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