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Landlords optimistic but fear they are ‘sitting ducks’ for tax rises

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  • 04/01/2021
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Landlords optimistic but fear they are ‘sitting ducks’ for tax rises
Landlords are generally optimistic about the buy-to-let market for 2021 but some are concerned they could be targets for tax rises to pay for the coronavirus crisis support.

 

According to research conducted by Property Master, only ten per cent of landlord respondents planned to exit in 2021 while almost 70 per cent said they were not about to sell any of their properties.

This approach was reflected in the wider sentiment with almost 45 per cent of landlords saying they were optimistic about the market in 2021 with only 29 per cent pessimistic.

Many of those raising concerns feared landlords would be, in the words of one respondent, “sitting ducks” when it came to raising taxes to pay for the current crisis, the report said.

Encouragingly, almost 43 per cent of landlords said they planned to buy more property in 2021 with the same number planning to stick with the properties they already had, while 13 per cent were undecided.

Where mortgage rates were concerned, just over half the landlords surveyed said they expected rates to remain the same, 38 per cent expected rises while just nine per cent thought there would be a drop.

 

Year of two halves

Property Master chief executive Angus Stewart said: “Our survey shows the buy-to-let sector as a whole is a resilient one.

“Those landlords that have survived may well be stronger and our survey shows them as giving buy to let the thumbs up as we move into 2021. We see the year as being one of two halves.

“There is clearly continued turbulence forecast for the first half of the year as coronavirus and Brexit play out. But the fundamentals of the private rented sector remain and now more than ever an increased number of people need a good quality roof over their heads, and this will create plenty of opportunity for landlords to do well.”

Regarding the state of the lending market, he added: “Inevitably, the coronavirus has led to some caution among lenders especially around loan to value ratios, but we see this as easing as the year plays out.

“We are confident the mortgage market will continue to support the aspirations of British landlords to expand and build upon their property portfolios.”

 

 

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