Latest research from a secured property lender claims that 54% of private rented sector landlords have been hit hard by the tougher lending regime coupled with the new raft of tax measures, resulting in many leaving the sector or reducing their portfolios.
20% of interviewees stated they had sold off some of their portfolio of BTL properties, with 15% saying they are extremely discouraged for purchasing more properties.
The research also found that a percentage of BTL investors were turning their attentions to real estate investment platforms, as it is seen as a better investment alternative.
8% of investors that had sold a buy-to-let property invested their funds into property debt investment platforms, with a third who are convinced that they investment are the way forward, rather than the PRS.
The most important and appealing feature for new investors is the offer of attractive secured property lending opportunities. They are also fully appreciative of the latest regulations that protect the sector and there is a greater transparency.
The lender has listed the most favourable features that encourage landlords to invest through property investment platforms and their BTL investor percentage:
1: Attractive secured property lending opportunities 33%
2: New regulation that will make the sector more transparent and safer 29%
3: Trust in the company’s management team and track record 28%
4: Attractive risk-adjusted returns 26%
Brad Bauman, CEO of the secured property lender, said: “Property debt investment platforms are a good alternative for landlords who understand the asset class and the risks involved. As the buy-to-let market becomes less attractive, our research suggests that many may increasingly turn to property debt investment platforms for attractive risk adjusted returns but without the hassle of managing tenants or carrying out costly maintenance.”
