A recent survey conducted by The Property Academy has uncovered a noteworthy shift in the intentions of landlords regarding their buy-to-let (BTL) investments. According to the survey, a significant 20 percent of landlords expressed plans to reduce their BTL holdings, marking a substantial increase from the mere 13 percent reported just a year prior.

The survey delved into the reasons behind this inclination to sell off properties. The primary driver, cited by 22 percent of respondents, was the burden of legislation. Another 17 percent found buy-to-let to be increasingly burdensome, often due to issues arising with tenants. Additionally, for approximately one-fifth of landlords, retirement or equity release prompted the decision to sell.

Notably, the survey highlighted that lease terms and dates played a crucial role in landlords’ decisions about which properties to sell, particularly if they aimed to sell with vacant possession.

Conversely, the survey also revealed a different perspective among other landlords. About two-thirds of respondents had no immediate intentions of altering their investment portfolios in the coming one to two years. Interestingly, those with larger portfolios seemed more inclined toward expansion, indicating a shift from small-scale amateur landlords toward a more professionalized sector.

Furthermore, while 22 percent of those considering increased investment were doing so for their pensions, a mere five percent were motivated by attractive yields, despite rising rents in various regions boosting yields.

The survey unearthed a concerning lack of awareness among buy-to-let landlords regarding Build To Rent (BTR) properties. Although there was a slight increase from the previous year, with 31 percent aware of BTR compared to 26 percent in the 2022 survey, BTR currently represents only two percent of all UK private rental stock. However, experts suggest it could potentially constitute 40 percent of private rental homes in the future. This projection hints at potential government pressure to support BTR growth if small landlords persist in selling their properties.

Surprisingly, nearly 40 percent of investors surveyed admitted having no knowledge of the Renters Reform Bill. Among those familiar with it, there was significant concern about the potential adverse effects. The loss of Section 21 rights to reclaim possession of properties emerged as the most significant worry, overshadowing concerns about the possible implementation of a legally enforceable ‘Decent Homes Standard’ in the private rental sector, which ranked lower on the list of concerns.

The survey outcomes shed light on the evolving landscape of buy-to-let investments and the multifaceted factors influencing landlords’ decisions, suggesting potential shifts in the rental market dynamics in the foreseeable future.