Over half (53%) of landlords say they would not have purchased their rental properties had they known how regulated the private rented sector (PRS) would become, according to new research.
The study by property development firm Accumulate Capital found over a third (37%) of property investors plan to downsize their portfolio this year, while a separate survey found over a quarter of landlords aim to quit the sector entirely by 2021 blaming stress – and Brexit.
Of those who wanted to scale back their investments, three in five (61%) blamed red tape and tax changes, which 72% of participants believe unfairly targeted landlords.
More than two thirds (69%) believed the costs of managing their property portfolio had risen considerably in the past five years.
Paul Howells, chief executive of Accumulate Capital, said: “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market.
“Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them.”
Meanwhile, a separate study found 27% of landlords are thinking of quitting the PRS by 2021, with many blaming stress.
Almost a third (31%) of landlords had more worries than they did 12 months ago, with 28% claiming that owning a rental property was “very stressful”.
Brexit continued to weigh heavily on people’s minds with some landlords reporting a falling demand from lucrative international tenants.
As January 31 approaches, there remains uncertainty surrounding residency rules for EU nationals and funding for international students.
Foreign workers and international students have traditionally generated among the highest rental yields for landlords. As a result, the NLA reports some landlords are finding ways to make their property more attractive, such as providing transport to and from the airport, managing or paying utility bills or delivering gift baskets in order to entice people from overseas.