Landlords in London not put off by changes to taxation
The majority of landlords across the UK have felt the pinch over the course of the last couple of years, as the government has changed how they are impacted by tax. But in one area of the country at least, buy-to-let investors are refusing to let this dampen their attitude towards the sector.
According to a new survey from Knight Frank, in London, a growing number of landlords are now re-letting their properties when a tenant leaves rather than trying to sell them and exit the market in the face of changing tax obligations.
It said that on the whole, landlords in the capital are looking at the lettings market as providing them with better opportunities for a long-term income rather than just seeing it as a short-term option that has been negatively impacted by new tax rules.
"We see no signs of an exit," said Tim Hyatt, head of Knight Frank’s lettings division, which has grown turnover by 50% in three years.
"Buy-to-let investors typically hold properties for an average of 16 years and most professional investors will ensure their portfolio is able to weather such storms."
He said that landlords are aware that there are no other assets available for them to invest in that will give them the same sort of income they have enjoyed from the buy-to-let sector over the last few years. Mr Hyatt also said that landlords appreciate the tangible nature of property that means it will always be an income producer.
Knight Frank reports that in the year to the end of August, there has been a rise of some 10.1 per cent in the number of re-let properties, which shows that fewer landlords are now opting to sell their homes, and more are simply bringing them back to market, where they know they will see an income.