UK investors want the government to provide tax relief or financial incentives to encourage them to make their properties more energy efficient.
A quarter (25%) said this was on their wishlist, while two thirds (63%) of buy-to-let landlords were positive about the proposed changes to improve the energy performance ratings on rental properties.
Currently the Boiler Upgrade Scheme allows owners to get a £7,500 grant towards installing a heat pump.
Ryan Etchells, chief commercial officer at Together, said: “That said, we have seen many amateur landlords decide to cut their losses and leave the market entirely, whilst many more are pivoting to the current climate.
“For example, we have seen many professional landlords looking to diversify their portfolios to spread the risk across residential classes as well as commercial sites.
“They are now turning to student accommodation, social housing holiday lets and mixed-use units to broaden income streams.
“In particular, we are seeing more houses being converted to houses of multiple occupancy (HMOs), as these can sometimes offer a better yield than a single residency.”
Half (44%) of buy-to-let landlords are concerned about Labour’s current plans and future policies for the buy-to-let sector, given what’s happened so far under the new government’s leadership.
Many are frustrated with Chancellor Rachel Reeves’ move to increase the stamp duty surcharge on second homes and investment properties from 3% to 5%.
Meanwhile the government allowed the stamp duty bands to revert back to previous levels, upping the financial burden for anyone wanting to buy a home.
A quarter (25%) want the government to prioritise tax relief or financial incentives for landlords investing in energy efficiency upgrades.
Etchells added: “Higher stamp duty may trigger some individual, private landlords to carefully consider how these costs will impact their property plans.
“The government must consider the knock-on effect this will have on providing good quality rental stock which is a vital component of the housing market.
“With affordability for first time buyers becoming ever more out of reach a growing number of the population rely on rental properties.
“Constant attacks on the sector will only force landlords out of the market, reducing the number of properties available and forcing rent upwards, further impacting the ability to save for a deposit.”
