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One in 10 landlords plan to exit the sector following the absence of any government help in the Budget.
That’s the claim of London lettings agency Benham and Reeves.
A survey of landlords commissioned by the agency after last week’s Budget found that 49 per cent were disappointed that whisperings of a potential reintroduction of mortgage relief were unfounded.
It was hoped that the government would throw the buy-to-let sector a bone following a string of legislative changes that have caused many to exit the sector and 71 per cent of those surveyed by Benham and Reeves stated that they would have also liked to have seen some other form of incentive announced.
Some 12 per cent of landlords also revealed that they had planned to increase the size of their portfolio but will now refrain, while a further six per cent will still push on with their plans to expand their investment.
However, 10 per cent stated that they will now reduce the size of their portfolio due to a lack of support from the government. What’s more, one in 10 also stated that they plan to exit the sector due to a lack of government incentives to remain.
Director of Benham and Reeves, Marc von Grundherr, comments: “The government has been waging war on buy-to-let investors for quite some time now and many within the sector were hoping that the spring statement would finally see them thrown a sugar lump, rather than shown the stick.
“Unfortunately this failed to materialise, but while disappointing, the majority of landlords remain unfazed and, let’s face it, unsurprised. Although they have no plans to increase the size of their portfolio, they also won’t be reducing it.
“However, one in 10 have had enough and with the government failing to incentivize them in any way, they are reducing their portfolios and exiting the sector. With some 2.74m landlords currently operating within the sector with around two properties per landlord, that’s a potential reduction of over half a million rental homes.
“This is, of course, bad news for the nation’s tenants, who will be left with even less choice when it comes to quality accommodation and an even higher commitment when it comes to the cost of renting.”