A survey from Simple Landlords Insurance showed despite the uncertainty caused by the Brexit vote and the new rules being introduced to cut tax relief on buy-to-let mortgage repayments, 80% of landlords say they will not change their investment plans.
The research found that only 9% of landlords said the Brexit vote meant they would postpone expanding their portfolio.
Despite the potential difficulties, most landlords feel confident in their investments, with nearly 90% intending to still be a landlord in two years. However, landlords are not ignoring the issues and one in five said they expected to increase their rents in the next year.
Ying Tan (pictured), managing director at The Buy to Let Business, was not surprised by the findings and commented: “Landlords are resilient and as business people will evolve to adapt to their surroundings. Buy to let could become less profitable than in the past due to the raft of changes to be implemented by the government, however, it is still more profitable than the majority of other alternative investments. It is also an asset which is tangible, and one that you can control the associated risks and add value to increase returns.”
Jenny Mayes, a spokeswoman for Simple Landlords Insurance, added: “While some landlords are adopting a cautious wait and see approach and slowing down their investment, others see opportunity in the changes and the vast majority want to keep or grow their property investment.
“Landlords are reacting in different ways to political change, but one thing they have in common is that most are refusing to let negativity deter them. With many, re-evaluating their objectives, changing their strategy, moving to limited company ownership or focusing on capital appreciation they are ultimately continuing to invest.”