Many landlords in UK property now 'reviewing their portfolios'
While the rental market in the UK remains a strong prospect for landlords, the changes and political threats the sector has faced in the past 12 months mean that many have been reviewing their position in the market, a new study has found.
Brexit, Stamp Duty changes and other taxation considerations mean that owners have increasingly been reviewing their investments and looking at where they go in the future. According to a study from Foundation Home Loans, as many as 38 per cent of those who own buy-to-let homes have, at the very least, reviewed the size of their property portfolios in order to make a decision about whether to absorb new costs or sell.
The good news is that many seem to believe the market is still well worth operating in. Of those asked, only seven per cent said they had actually sold off property in the wake of changes in the last couple of years.
A more common strategy is for owners to pass the increases in costs on to their tenants, who can help them remain operational in the rental market, but without losing out on their profits. Of those surveyed by Foundation Home Loans, some 30 per cent said this was a strategy they had undertaken.
"Landlords have been met with a raft of changes, from Stamp Duty charges to shifts in tax policy, and the lack of certainty on the political front has clouded the picture somewhat. The response has been to streamline larger portfolios and protect income by increasing rents," said Jeff Knight, marketing director at Foundation Home Loans.
The good news for the sector is that even as more landlords opt to review their portfolios and look at whether they need to change strategy, the positives that they do enjoy from the market at the moment means that the majority are staying put, showing that the sector has the long-term health needed to negotiate the choppy waters experienced over the past couple of years.