Seven out of 10 buy-to-let landlords do not intend to sell any of their properties in the next 12 months, latest data from the Landbay quarterly survey has revealed.
The strongest sentiment came from those with smaller portfolios of between one and three (78%) and four and 10 properties (76%). However, 69% of landlords with more than 20 properties shared the same view as did 59% of those with 11-20 properties.
Many respondents pointed to a potential downturn in house prices and strong rental yields as their main reason not to sell. Others said they were waiting to see what happens to mortgage rates in the coming months before making any decisions.
Among those landlords planning to sell properties, 20% said they intend to sell up to a quarter of their portfolio. Just 2% plan to see all their properties, while 8% intend to cut between 25 and 50% of their housing stock.
Unsurprisingly, the deciding factor for 45% of landlords intending to sell is rising interest rates, while 22% said rent doesn’t cover their mortgage costs. Respondents also listed house prices (16%) and the changing thresholds of Capital Gains Tax announced in the Autumn Statement (14%).
The findings form part of Landbay’s latest quarterly survey which aims to find out the attitudes and intentions of existing landlords. Respondents were quizzed on a range of topics to determine the key factors facing the sector and their thoughts on the future of the buy-to-let market.
Paul Brett, Landbay’s managing director, 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.
“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.”