Seven in 10 buy-to-let (BTL) landlords do not intend to sell any of their properties in the next 12 months, according to new research from Landbay.

A quarterly survey by the lender has revealed that the strongest sentiment has come from landlords with smaller portfolios of between one and three (78%) and four and 10 properties (76%).

However, 69% of landlords with more than 20 properties shared the same view, as did 59% of those with 11 to 20 properties.

Landbay suggested that of the 700 landlord respondents to its survey, many pointed to a “potential downturn” in house prices and strong rental yields as their main reason not to sell. Others said they were waiting to see what happens to mortgage rates in the coming months before making any decisions.

“Against a backdrop of rising mortgage rates, increasing costs and tougher stress tests, landlords have continued to show real resilience,” said Landbay managing director, intermediaries, Paul Brett. “This is once again highlighted by our data and shows that despite the challenges, the majority of landlords are still not looking to trim their portfolios.

Among the landlords planning to sell properties, one in five (20%) said they intend to sell up to a quarter of their portfolio. Just 2% plan to see all their properties, while 8% intend to cut between 25% to 50% of their housing stock.

The deciding factor for 45% of landlords intending to sell is rising interest rates, while 22% said rent no longer covers their mortgage costs. Respondents also listed house prices (16%) and the changing thresholds of Capital Gains Tax announced in the Autumn Statement (14%).

“While some may be adopting a ‘suck it and see’ approach in the current climate, there’s plenty of reasons to be positive as the year progresses,” Brett added.

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