Most landlords feel let down by the recent Budget but some are taking a longer view of the buy-to-let market, a new survey from Landbay has found.
Seventy two percent of landlords told buy-to-let lender Landbay that they were disappointed by the Budget. Landlords were particularly concerned by increased stamp duty on second homes and investment properties.
Just under 40% of landlords said that the change meant they wouldn’t buy more rental properties. Thirty per cent said it would only affect them a little and that they would simply rein in their plans. Twelve per cent said the change wouldn’t affect them at all. Some comments included that the 2% stamp duty increase was not a big deal.
While only six per cent of landlords said they felt positive about the Budget, some took a longer, more pragmatic view of the buy-to-let market.
As one landlord said: “I feel positive because this is my attitude towards property investment over the last forty years. To me this is a long-term investment and I am not at all looking for benefit in the short-term. Although the government’s action and policy changes can bring disappointment to many, my financial status on buy-to-let is sound and I can take it on.”
Some landlords felt that the government was forgetting that landlords provided an essential service. One commented: “There is a chronic shortage of rental properties. It’s a lot like taxing a doctor extra for curing a patient.”
Those with a portfolio of four to 10 properties were the largest group to say that increased stamp duty would affect them a lot, at 38%. In the group that said ‘a lot’, the largest group by region were those from London and the South East at 38%. Some 12.4% said the change would not affect them at all. The ‘not at all’ group was evenly spread across all portfolio sizes.
Rob Stanton, sales and distribution director at Landbay, said: “Landlords are understandably concerned about the increase in stamp duty. But it should be remembered that there is an abundance of tenants ready to rent across the country. Affordability is still a real challenge for residential buyers and demand continues to outstrip supply.
“The buy-to-let sector has survived countless crises and changing governments over the years and continues to thrive. But nurturing confidence among landlords is key to the health and prosperity of the UK housing market if the sector is to provide much needed accommodation.”
