New regulations are pushing buy-to-let landlords out of the market, according to research from property lender Together.

Together’s findings reveal more than a tenth (12%) of BTL landlords will be offloading properties this year, with 11% planning to pack up.

When asked for the reasons, 14% pointed to the Capital Gains Tax burden, 12% said rising interest rates were to blame, and 8% cited the headaches caused by the Renters’ Reform Bill.

However, nearly a third (29%) are planning to expand or diversify.

Challenges

Of the biggest challenges over the next 12 months, 17% of landlords pointed to the rising cost of building materials, 16% cited competition from overseas investors as well as further BTL policy change from the Labour government.

Also, 15% of landlords consider stamp duty increases a problem, and a further 15% feel the same for safety standards.

Ryan Etchells, Chief Commercial Officer at Together (main picture), says: “BTL is a robust market and while the impact of cost pressures and wider regulatory changes is apparent, we are still seeing a healthy proportion of landlords riding out the wave and expanding their portfolios.

On the whole it’s a changing of the guard rather than a mass exodus.”

“There will likely be some smaller or amateur landlords who decide to sell off investments or exit completely, but in their position we are already seeing larger, professional landlords stepping in to seize diversified opportunities,” he says.

“Until the final outcome of the Renters Reform Bill is known, there may be a bit more volatility as landlords assess the cost impact to them and their property plans this year.

“But, on the whole it’s a changing of the guard rather than a mass exodus.”

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