A Fifth of Landlords Plan to Remain in Buy-to-let Indefinitely

According to the latest research provided by Foundation Home Loans, 1 in 5 landlords are intending to remain in the buy-to-let market indefinitely. In addition, portfolio landlords are equally adamant.

Seemingly unaffected by the recent regulatory and tax changes paving the way for exit and indications of a mass exodus, 18% of landlords claimed that they would expect to remain a landlord indefinitely, and 19% of landlords with four properties or more said the same.

This is consistent across the age groups: one in ten landlords aged 18-34 intend to remain indefinitely, increasing to 17% of those aged 35-54 and 20% of those aged 55 and over.

At a regional level, a quarter of landlords in the East of England – more than any other region – claimed they had no plans to exit the market.

However, 6% of all landlords questioned claimed that they only intended to remain a landlord for the next 1 or 2 years.

Moreover, the research also discovered that existing portfolio landlords expect to stay invested in the market for an average of 15 years, in comparison to 10 years for non-portfolio landlords.

Furthermore, 20% of portfolio landlords have been a landlord for 16-20 years.

Jeff Knight, marketing director, Foundation Home Loans, said: “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. 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. 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.”