Almost two-thirds of landlords are not planning to sell any of their properties over the coming year, despite rising interest rates, data from Landbay shows.
The BTL specialist says 64% of BTL owners have no plans to sell over the next 12 months.
It adds the desire to hold onto their properties was strongest among landlords with single properties, with 75% expressing this view, while 69% of those with smaller portfolios of two or three properties said the same.
However, the number of landlords who are planning to sell some properties lifted to 30% — from 28% in the previous quarter.
It adds just 6% plan to sell all their properties with respondents split across small, medium and large landlords.
The report comes amid much anecdotal evidence of landlords vowing to sell up amid tightening government energy performance certificates and rental reform legislation.
It also comes after the Bank of England hiked the base rate by 50 basis points to 5% last month, its 13th rate rise in a row taking it to the highest level in 15 years.
Landbay’s study says the deciding factor for 60% of landlords intending to sell is rising interest rates – an increase from 45% in the last quarter.
It adds that 45% of BTL owners say the rents they are currently charging do not cover their mortgage costs, which is up from 28% from the survey in the final three months of last year.
Landlords who are considering selling properties also mentioned BTL taxation, raised by 47%, the cost of meeting the proposed EPC requirements, a worry among 40%, and concerns about evicting tenants, say 34%.
Landbay managing director, intermediaries Paul Brett says: “While it’s certainly the case that some landlords are trimming their portfolios in the current climate, our latest data demonstrates that the majority are not looking to make any cuts at all.
“This is positive news for the wider housing market which is so reliant on rental supply. After all, one-in-five houses in England and Wales depend on the private rented sector for housing.
“For those considering selling, we’d always say it’s worth their time speaking with a broker to find out what is their best possible move, especially when there are lenders like us willing to innovate and find solutions to support landlords in all situations.”
