There is still “life” in the buy-to-let sector despite recent regulatory and financial changes, according to property management firm Apropos.
In its latest report, Apropos by DJ Alexander said that there has “undoubtedly” been a rising number of landlords leaving the market due to less profitability and increased regulations.
Nonetheless, many landlords remain “committed” to the buy-to-let market.
In its latest findings, the firm found that the second highest figure of buy-to-let loans occurred in October, with 6,600 loans confirmed throughout the month.
Buy-to-let remortgaging was also at its second highest level in the same month.
The number of buy-to-let mortgages in arrears also fell by 5% in the third quarter, compared to the same quarter the year prior.
David Alexander, joint managing director of apropos by DJ Alexander, said: “Many landlords will spend some of their Christmas holidays considering their future in the sector.
“Next year will see the culmination of a series of changes to taxation initiated by George Osborne which have sought to reduce the financial benefits of being a landlord and consequently pay more tax to the Treasury.”
He added: “It is clear that many landlords have found the last few years a challenge. Greater regulation, more stringent financial controls, and reduced tax benefits means that the business of being a landlord has become more complex, more costly, and less profitable. Many have already thought enough is enough and have sold up and exited the market.”
“But there is still money to be made in the private rented sector and being a landlord can provide a reasonable income and a healthy pension. But landlords need to be more savvy to make it work and much more proactive than in the past.”