Research by Aldermore shows that over half the UK’s buy-to-let landlords (52%) expect today’s changes to stamp duty and buy-to-let mortgage tax relief to have no real impact on them.
The research, carried out amongst 1,000 landlords by YouGov on behalf of Aldermore, explores how the recent changes to buy-to-let, which came into force on 1 April, have affected landlords, including whether they would raise rents, sell their properties and what they thought the future was for the private rented sector.
Seven in 10 respondents expect the number of tenants in the private rented sector to increase over the next five years, but a third (33%) of landlords feel the overall value of the buy-to-let market will decrease over the next 12 months.
The majority of landlords (63%) in Britain own only one property that they rent out, with 95% of respondents owning five or fewer properties.
Charles Haresnape, group managing director for mortgages at Aldermore, said: “These figures show that the majority of landlords believe there is nothing to fear for the future of the buy-to-let market in the UK. It is clear that the vast majority of landlords fall into the ‘accidental landlord’ category, and as such would be unaffected by upcoming changes as they are not actively looking to build a rental portfolio.
“With 70% expecting the number of people in the private rented sector to rise over the next five years, it is vital that regulation does not stifle this hugely important segment of the UK housing market, particularly at a time of significant supply constraints.
“The majority of our buy-to-let customers are committed long-term landlords. While they will obviously not welcome an increase in stamp duty, over the course of a 20 year investment the sums remain relatively small and are unlikely to significantly affect the buy-to-let market.”