More than half of UK landlords still regard residential property as a good long-term investment, according to a survey of 437 landlords carried out by estate agency Benham and Reeves. The poll found that 50.6% remain positive about the long-term prospects for property, even after a run of tax and regulatory changes that have made the buy-to-let sector noticeably harder to operate in. As reported by BuyAssociation, the findings suggest landlord sentiment has held up better than the steady drip of gloomy headlines about the sector might imply.
That matters well beyond the landlords themselves. Rental supply, tenant demand and the wider health of the housing market all depend on whether the people who own rental property intend to stay in it or sell up. A survey showing landlords are still, on balance, positive about the sector is a useful sentiment indicator for anyone trying to work out where the rental market goes next, from tenants weighing up whether stock will loosen up, to lenders and investors trying to gauge future demand for buy-to-let finance.
Why landlord confidence is not the whole story
The headline figure is a bare majority, not overwhelming enthusiasm. Just over half of landlords being positive also means a substantial minority are not, and the survey's own detail points to landlords who are less convinced or actively reconsidering their position. That split is the real story here. Buy-to-let has absorbed several years of change, including tighter mortgage interest tax relief, higher rates of tax on additional property purchases, and increasing regulatory obligations around energy efficiency and tenant rights. Landlords who have weathered that and still feel positive are, in effect, telling us the fundamentals of rental property, steady demand, long-term capital growth, still look sound to them. Those who have soured on it are more likely to be the ones selling up, which is part of what has been thinning out rental stock in some areas.
What this means if you're a landlord weighing your next move
For existing landlords, the survey is a reminder that sentiment in the sector is split roughly down the middle rather than uniformly bullish or bearish. If you're comfortable with your existing portfolio and the numbers still work after tax and compliance costs, you're in company with the slight majority who see the long game as worth playing. If you're on the fence, particularly if you're weighing up refinancing, extending a portfolio or moving quickly on a property before a mortgage offer or auction deadline, it's worth understanding the range of finance options available rather than assuming a standard buy-to-let mortgage is the only route. Some landlords use short-term finance to bridge gaps between selling one property and completing on another, or to secure a purchase quickly while a standard mortgage application is still going through. Our guide to bridging finance for buy-to-let covers how that works in practice and when it tends to make sense.
What it means if you're a tenant or a buyer
If landlords broadly stay put rather than exit the sector en masse, that's arguably good news for rental supply, since a wave of landlord sell-offs tends to push up rents in the short term as stock shrinks. Continued landlord confidence, even at a modest majority level, suggests the exodus some had predicted after successive tax changes has not materialised in full. For prospective buyers competing with investors for the same properties, that also means buy-to-let purchasers are likely to remain part of the market rather than stepping back entirely.
