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.”

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