More than half of UK landlords are confident about the buy to let sector

Despite tax and stamp duty changes the majority of buy to let landlords in the UK consider it to be a promising investment opportunity according to a new poll.

Some 59% of landlords surveyed are still confident in renting out property as a source of income, with only 11% having lost confidence and 30% being unsure, according to the survey from investment consultancy Knight Knox.

It point out that half of respondents intend to buy another rental property within the next five years despite the recent policy changes introduced by the Government affecting their tax.

‘The results of our survey would suggest that, despite ostensibly damaging changes to the market over the last few years, landlords remain positive about the returns this asset class can generate. Bricks and mortar is likely to remain one of the most stable investment options and has so far weathered the changes brought in by new legislation,’ said Andy Phillips, commercial director at Knight Knox.

‘Close to six million properties in the UK are now in the private rented sector, with this expected to rise to 7.2 million by 2025, which is the equivalent of a quarter of all homes. With this sort of opportunity, and with property prices continuing to rise, investors could potentially benefit from both regular rental income over the years and capital appreciation when the time comes to sell,’ he added.

The survey also found that 44% of landlords have been renting out property for five years or fewer, suggesting a strong appetite for entry into the market.

When it comes to buying homes off-plan, 83% of respondents say they’ve never bought such a property, but almost half say they would consider doing so in the future.

‘Buying off-plan is certainly becoming more popular. With developers having built up strong track records of delivering private rented schemes over the last five years in particular, landlords now feel more secure signing on the dotted line with knowledge of the potential rewards they could reap further down the line,’ Phillips added.