Eight out of 10 landlords still see residential property as the best form of investment and plan to maintain or increase their portfolios over the next year, research from Leaders Romans Group (LRG) reveals.

Despite widespread reports of a mass exodus of landlords due to enhanced regulations, changes to government policy and amateur investors failing to make a profit analysis of LRG’s own landlords uncovers an entirely different picture.

EXIT

A survey of 271 landlords across the agency group’s brands, from those with a single investment property (46%) to those with ten or more (4%), found that less than one in 10 (7%) investors plan to exit the buy-to-let market in the next year with just 12% planning to reduce their portfolio.

In contrast, seven out of 10 (71%) planned to maintain their portfolio size and one in 10 (10%) planned to expand it.

Of the 51 landlords planning to sell, four in 10 (41%) said this was because of changes in policies, increased regulations and the imminent Renters Reform Bill.

VITAL

Allison Thompson (main picture), Managing Director of Lettings at LRG, says: “The private rented sector is vital to our economy and without it 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.

The housing crisis cannot be resolved by penalising the already stretched private rented sector.”

“However, the Government must realise that the housing crisis – specifically the under-supply of rental units – cannot be resolved by penalising the already stretched private rented sector (PRS). It is vital that the Government re-considers the components of the proposed legislation which are putting off some landlords.

“This includes the much-talked about proposals to require rented properties to have an EPC rating of C, and also proposals surrounding Section 21 and assured shorthold tenancies (ASTs).”