Despite the impact of higher buy to let taxes on the sector, research reveals that landlords remain confident about their prospects.
The findings from investment platform Property Partner reveal that 57% of landlords had not changed their view of the buy to let sector despite the impact of mortgage tax relief changes.
Indeed, many landlords are looking to focus on long-term growth over potential tax efficiencies and the impact of the stamp duty hike last year.
One reason for this, say researchers, is that many buy to let investors are looking to avoid risk and believe that the long-term prospects for property are still strong regardless of political upheaval.
The researchers say that there has been no five-year period since records started in 1972 for a negative return on UK residential property investment.
Few investors are looking to invest in property
However, Property Partner experts say that despite the prospects over the medium and long-term, it's surprising how few investors are looking to invest in property.
They found that 19% of investors saw property as a good way to diversify assets and 10% said that property investment is easy.
The findings also show that 51% of potential landlords believe the prospect of managing tenants was a deterrent.
The chief executive at Property Partner, Dan Gandesha, said: “Our research shows that confidence in the UK's buy to let sector is high and investors are bullish and they see property as a long-term, secure investment despite the efforts to increase the tax take.
“With no end to the acute shortage of housing stock in sight, there's an inevitability on the upward pressure on prices and in the long term these prices will rise faster than the rate of inflation, wages and economic growth.”
Fears that BTL tax changes will create pensions crisis
Meanwhile, the National Landlords’ Association (NLA) has warned that the impact of buy to let tax changes on the sector could be the UK's 'next pension crisis'.
They say that the slowdown in the market recently could suggest that things may be about to change - particularly for those who are looking to their property investment to help fund their retirement.
The NLA's chief executive, Richard Lambert, said: “The changing tax regime will reduce statuary income received by people from their property investments and compromise their retirement plans.
“Around 27% of landlords are retired already and 37% are aged over 55 so there is a pressing need to tackle this issue.”
The NLA is now urging the government to help investors affected by their financial plans to taper the amount of capital gains tax that a landlord will pay when they sell their property and base it on how long the property has been let for and how long it's been owned.