Landlords regret investing in buy-to-let
Over half (53%) of landlords would not have purchased their properties in the first place had they known how regulated the Private Rented Sector would become, research from property development firm Accumulate Capital has found.
Over a third (37%) of property investors plan to sell at least one of their properties this year.
Of this group, three in five (61%) blamed increasing regulations and taxes while one in five (21%) pledged to instead focus on alternative property investment, like debt and development finance.
Paul Howells, chief executive of Accumulate Capital, said: “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market.
“Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them.
“What we might see as a result, is investors selling properties and downsizing their portfolios.
“Indeed, a considerable number of investors are now looking to alternative real estate investment options instead, such as development finance – these provide ways to access bricks and mortar investment opportunities without the complications or costs of actually purchasing the asset.”
Reflecting on the challenges facing landlords, nearly three quarters (72%) believe current tax and regulation measures are unfairly weighted against landlords.
Meanwhile over two thirds (69%) reckon the costs of managing their property portfolio has risen considerably in the past five years.