Only 7% of landlords plan to exit the BTL market in the next year, according to the latest Leaders Romans Group (LRG).
The data — based on a survey of landlords across the firm’s country-wide estate agency brands — found that only 51 of the total 271 respondents plan to exit the market, and 12% of respondents plan to reduce their portfolio in 2023.
In contract, 71% of respondents plan to maintain their portfolio size, and 10% plan to expand it.
Of the 51 landlords planning to sell, 41% quoted the change in policies — such as the proposed Renters Reform Bill — as the top reason for their decision.
Other reasons cited include the economy (interest rates, energy costs, and lack of disposable income), as well as personal circumstances unrelated to income — both quoted by 29% of respondents.
Allison Thompson, managing director of lettings at LRG (pictured above) commented: “The PRS is vital to our economy and without it, [we] would see a huge increase in homelessness, so it is very good news that 81% of our landlords still see residential property as the best form of investment and plan to maintain or increase their portfolios over the next year.
“A property investment is for the long-term; it is one which will see many economic cycles and changes of government, but despite interest rates rising and falling and regulations coming and going, a BTL investment will invariably deliver a good financial return.
“However, the government must realise that the housing crisis — specifically the under-supply of rental units — cannot be resolved by penalising the already stretched PRS.
“It is vital that the government reconsiders the components of the proposed legislation which are putting off some landlords.”
