Landlords are less positive about the future of the buy to let market than they were six months ago, according to new research.
The survey by CHL Mortgages involved 622 landlord respondents and revealed that although the majority (64 percent) was still positive, this figure has fallen from 81 percent at the start of the year.
And the number of landlords who are unsure about the future of the buy to let market is up from nine to 25 percent.
This fall in confidence means landlords are considering their investments more carefully with only 28 percent saying they plan to purchase a new property, which is a drop of 10 percent from the previous survey.
However 66 percent of landlords are looking to hold on to the properties they own in comparison to 53 percent at the start of the year.
Almost half of respondents stated lack of mortgage finance for new properties and re-mortgaging as the main reason for not adding to their buy to let property portfolios.
In addition, around a third said the increased deposit requirements were a major factor.
Only 19 percent of landlords said that the 10 percent increase in Capital Gains Tax (CGT) for higher ratepayers has impacted their view of the buy to let sector as an investment.
Bob Young, Managing Director of CHL Mortgages, said: “Given the speculation around the buy to let market over the last six months, particularly with regard to the increases in CGT and the potential for FSA regulation, it is perhaps unsurprising that landlords are less sure about the future for the sector than they were six months ago.
“It is therefore entirely understandable that landlords are adopting more of a wait and see approach with both the overall future of the sector and in terms of their own plans to add to their portfolios.
“Clearly, landlords would like to see greater access to finance and perhaps less hefty deposit requirements, however this seems unlikely given the current climate.
“What comes across from the survey is a clear view of the buy to let market as one in which professional landlords dominate, which in our view is no bad thing."
