Buy-to-let lending at highest since 2007

20% of landlords plan to remain in the PRS indefinitely

There’s been plenty of speculation about a mass exodus of landlords planning to leave the PRS, but recent research from Foundation Home Loans has revealed that one in five intend to see it through to the bitter end.

The research highlighted that 18% of landlords intend to remaining in the BLT market ‘indefinitely’, and are seemingly not concerned with the ups and downs of the industry, instead focusing on the long-term gains of a bricks and mortar investment.

Interestingly, the figures changed depending on the age range of the landlord in question, only 10% of landlords aged 18-34 were able to say with certainty that they intended to stay in the market indefinitely, rising to 17% in the 35-54 age bracket, and 20% in those aged 55 and over. Possibly those in the older age bracket have a clearer view of their long-term plans, whereas the younger generation of landlords are still playing it safe, considering an exit plan just in case the legislation changes continue to bite!

Portfolio landlords, those who oversee a number of properties, expect to remain in the market for an average of 15 years, compared to 10 years for non-portfolio landlords.

There have been ripples of concern that a mass exodus of landlords is expected, and certainly the changes introduced are a handful to deal with if not addressed in the right way. But this is clearly an exaggerated view of the market. With so much interest in investing in the long-term, it is therefore imperative that newer landlords are sufficiently supported to avoid any knee-jerk exits. This is particularly the case for portfolio landlords as diversification is key to maintaining cashflow.

Jeff Knight, marketing director at Foundation Home Loans

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