The research found over a third of landlords or 38% have reviewed the size of their portfolios in light of increased costs, while 7% have actually sold off properties. Larger landlords – who will be impacted by new Prudential Regulation Authority (PRA) rules from next month – are more likely to have taken action with 19% of landlords with 20 or more properties having reduced the size of portfolios.
Almost three quarters (71%) of landlords said they had experienced a drop in confidence; more so for those operating in Central (78%) and Outer London (77%).
Jeff Knight (pictured), marketing director, Foundation Home Loans, said: “Landlords have been met with a raft of changes, from Stamp Duty charges to shifts in tax policy, and the lack of certainty on the political front has clouded the picture somewhat. The response has been to ‘batten down the hatches’, streamlining larger portfolios and protecting income by increasing rents – decisions that can be reviewed once the buy to let market is more accommodating.”
He added: “The fact remains that, whether it’s as a stepping stone to home ownership or a longer term lifestyle decision for tenants, the rental sector is an increasingly important part of the housing mix. This will ultimately be best served by a wide choice of property, and good landlords who can have confidence in decent returns.”