There are few areas of the market that attract as much speculation as Buy to Let, and much of it is contradictory.
On the same day last week there were two news stories in the trade press that each painted a very different picture of the outlook for Buy to Let.
In one story, a survey of more than 1,000 landlords by FJP Investment found that 68% of multiple property owners believe Buy to Let investments have become "far less attractive" over the past five years, with 71% believing they have been unfairly targeted by the Government through tax reforms and new regulations since 2016.
At the same time, criteria specialist, Knowledge Bank revealed that the most searched-for term by brokers in February was ‘first-time landlords’ and that this was actually the tenth month in a row when it made the top five criteria searches.
So, what’s the truth? Is Buy to Let less attractive than it has been in the past or is it attracting new investors?
In reality, it’s probably a bit of both.
After all, landlords have been hit by an increasing tax burden in recent years, which is why so many are looking to different types of Buy to Let investment that can deliver stronger yields – such as holiday lets, HMOs and refurbishment projects.
However, Buy to Let remains an appealing investment for landlords who are prepared to take a long-term view. It’s often said that bricks and mortar become more popular during a downturn, rather than equities, as they at least provide investors with a tangible asset, and this certainly seems to be the case at the moment.
Whatever news story you read about Buy to Let, positive or negative, it’s always worth referring back to the fundamentals that underpin this market. The UK private rental sector provides accommodation for a fifth of all households. It has become an integral part of our housing stock and will remain so. And we continue to have a housing deficit in this country, with demand for housing vastly exceeding supply.
These are the two key factors that mean, whatever the latest survey says, ultimately, Buy to Let is here to stay.