One in five landlords intend to stay in buy-to-let market indefinitely

Some 18% of landlords said they intended to remain in the buy-to-let (BTL) market indefinitely, with the same number of portfolio landlords anticipating the same, according to recent research.

Foundation Home Loans surveyed roughly 1,000 UK landlords, revealing that many are unperturbed by recent regulatory and tax changes. While 18% were confident they would stay in the BTL market indefinitely, 19% of landlords with four properties or more said the same.

This was the same across all age groups. One in 10 landlords aged 18-34 intend to remain indefinitely, rising to 17% of those aged 35-54 and 20% of those aged 55 and over.

On a regional basis, a quarter of landlords in the east of England said they had no plans to leave the market – this was more than any other region. On the flip side, 6% of all landlords surveyed said they only intended to remain a landlord for the next one or two years.

Additionally, today’s portfolio landlords expect to stay invested in the market for an average of 15 years, compared to 10 years for non-portfolio landlords. One in five (20%) portfolio landlords have been a landlord for 16-20 years, highlighting that, with enough time to develop experience, the BTL market can prove worthwhile for this demographic.

Jeff Knight, marketing director of Foundation Home Loans said there have been ‘ripples of concern’ that a mass exodus of landlords is expected.

“Certainly, the changes introduced are a handful to deal with if not addressed in the right way,” he said. “But this is clearly an exaggerated view of the market.”

He added: “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 exists. This is particularly the case for portfolio landlords as diversification is key to maintaining cashflow.”

Knight concluded: “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.”