Research carried out by mortgage market specialist Pegasus Insight found that 64% of BTL landlords wanted the eviction process to be improved, while 61% wanted to see a reduction in capital gains tax (CGT). 

Reintroducing tax relief on mortgage interest payments would also boost investment in BTL, said 61% of respondents, while a further 60% said removing the stamp duty surcharge on additional properties would spark interest in the sector. 

Some 59% of landlord respondents said lower interest rates of below 4% would make the sector more appealing to invest in, while 52% wanted more stability and predictability around regulation. 

Also among BTL landlords looking to dispose of properties, the importance of a better eviction process was a key factor in making BTL more attractive, as cited by 71% of this cohort. 

A fall in house prices was less important to landlords, as just 16% of all respondents said this was a main driver in encouraging investment. 

Sponsored

Five ways we’ve improved our Premier service

Sponsored by Halifax Intermediaries

 

Tending to landlord concerns 

Bethan Cooke, director of Pegasus Insight, said: “This research provides valuable insight into landlords’ concerns. The fact that a larger proportion of landlords point to a more efficient evictions process as a greater spur to investment than a lower tax regime demonstrates how worried they are about the removal of Section 21 (no-fault evictions) in the Renters’ Rights Bill, which the government has confirmed it will introduce within the next year.

“It is no secret that there is a massive backlog in processing evictions through the legal system, and industry bodies have warned that banning Section 21 could overwhelm the courts and prove the final nail in the coffin for some landlords.” 

She added: “Our research demonstrates that, whatever form the new bill takes, it must be considered carefully to take into account landlords’ concerns as well as tenants’, to prevent a decline in rental property numbers, and an accompanying rise in rents.” 

 

Government must reconsider ‘punitive’ taxes on BTL landlords

Cooke continued: “When it comes to taxes, these results confirm that, if the government wants to encourage more investment in the private rented sector, which plays a key role in providing homes for almost 20% of UK households, it would do well to consider reviewing the punitive tax regime [that] has been imposed on landlords in recent years, rather than increasing CGT or tightening the screw on limited company landlords, which many fear. 

“These insights are just a fraction of the results revealed in the latest of our regular research on buy-to-let landlords. We will continue to track landlords’ intentions, attitudes and concerns to better inform our lender partners and the industry about the vital buy-to-let sector and how best to serve it.”