How many buy to let properties do you own?

A recent report suggested that there are now more buy to let investors with two or more properties than ever before. It also appears that private rental of properties is now becoming more professional and not seen as “a job on the side”.

 

I only see this getting larger.

• General housing demand
• Demand for better quality housing
• High cost of entry for homeowners and interest rates moving up slowly will increase the number of tennants

It might take a long while to get to the continental renting ethos but it is moving in that direction.,

 

I think you are right, first time buyers today have been "spoiled" to a certain extent by the low cost of finance. When interest rates do finally start to tick higher I think many will be found wanting on the financial front.

 

Still, I think a lot of BTL investors don’t fully appreciate (or even know about) the Section 24 tax relief changes and will get a shock when they bite fully. This combined with inevitable interest rate rises (as you say, LTI) will push a lot of smaller investors out of the market.

Many are already turning to strategies such as serviced accommodation and HMO to mitigate this but will this leave us with a shortage of single family rentals in the long run??

 

Whichever was you look at it the government has a lot to answer for. They have encouraged BTL because they sold off council houses in years gone by and did not replace them. Now, just as BTL investors can see a decent long term return on the horizon, they are being milked for more and more tax income. Same old story.....