Most landlords don’t plan to sell properties in next year
Some welcome news for renters and buy-to-let landlords alike as a new survey reveals that nearly three quarters of landlords do not intend to sell their properties in the next 12 months.
Despite these being difficult times in the buy-to-let market, a new survey from specialist mortgage lender Landbay, which collated views of 700 landlords, showed that seven out of 10 landlords did not plan to sell properties in the next year.
This was strongest among those with smaller portfolios of one to three properties at 78%.
It was followed by those who had four to 10 properties at 76% and 69% of landlords with more than 20 properties.
Respondents said the potential fall in house prices and strong rental yields were the primary reasons not to sell and others said they wanted to wait and see what happens to mortgage rates over the next few months before making a decision.
Just under half of landlords said the deciding factor to sell would be rising interest rates, and under a quarter said the rent didn’t cover mortgage costs.
‘Landlords show real resilience’
Paul Brett, Landbay’s managing director for intermediaries said: “Against a backdrop of rising mortgage rates, increasing costs and tougher stress tests, landlords have continued to show real resilience.
“This is once again highlighted by our data and shows that despite the challenges, the majority of landlords are still not looking to trim their portfolios.”
He continued: “Since the start of the year, we’ve introduced a number of rate reductions and introduced a variable fee structure to provide buy-to-let landlords with a range of competitive options.
“While some may be adopting a “suck it and see” approach in the current climate, there’s plenty of reasons to be positive as the year progresses.”