Two-thirds of property investors believe BTL market has lost appeal, study finds

More than two-thirds of UK property investors believe the buy-to-let (BTL) market has lost its appeal, according to new research from FJP Investment.

A survey from the investment firm revealed that 68% of multiple property owners believe BTL investments have become far less attractive over the past five years.

FJP Investment’s study, which quizzed 1,004 UK property owners, of which 344 owned two or more investment properties, suggested the vast majority (71%) of landlords and property investors believe they have been unfairly targeted by the government through tax reforms and new regulations since 2016.

The study also suggested that two-thirds (67%) of landlords believe they would consider other forms of property investment in the future that do not incur the same taxation and complexity as BTL and second home purchases.
Forty-four per cent of property investors said they plan to sell one or more of their properties in 2021. However, the same number (44%) stated they intend to purchase a house or flat this year.

“After years of reform and regulation, the appeal of BTL investments is clearly on the wane,” commented FJP Investment CEO, Jamie Johnson.

“Tellingly, property investors are confident house prices will rise, with the added cost and complexity of investing and then letting out multiple properties meaning that people are seeking alternative forms of bricks and mortar investment.

“With the stamp duty holiday extended until the end of June, and the UK inching towards an end to lockdown, the next few months will be critical for the property market. Time will tell if there is indeed a mass exodus of investors from the BTL sector, but this new research underlines the fact that there is far less appetite to be a landlord.”

    Share Story:

Recent Stories

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.