Charles Esther
A recent survey shows that a third of Britons aspire to own a buy-to-let property.
This is despite rising taxes, tougher regulations, and reports that the market is in decline.
The lender Market Financial Solutions conducted the survey.
It found that younger people have the strongest desire to become landlords.
More than half of those aged 18 to 34 said they want to own a buy-to-let property in the future.
In contrast, only 14 per cent of those aged 55 or older expressed the same desire.
Some might argue that younger people have not fully considered the pros and cons of renting out property.
Additionally, some older adults may not aspire to be landlords because they already are.
However, the survey highlights a continued appetite to invest in buy-to-let, despite perceptions that it is less financially rewarding now.
Paresh Raja, chief executive of Market Financial Solutions, says buy-to-let investing remains popular.
He acknowledges challenges such as rising house prices, borrowing costs, and tighter regulations.
These factors have caused difficulties for both current and prospective landlords.
Raja believes the survey underlines the UK’s ongoing love affair with bricks and mortar investment.
He adds that if buy-to-let mortgage rates fall as predicted, more investors might enter the market.
Why Buy to Let Remains a Popular Investment
Buy-to-let has long been a way for Britons to build wealth.
It also serves as an alternative means to fund retirement.
Despite many landlords doing well in recent decades, the investment case for buy-to-let faces more scrutiny today.
Since 2016, higher taxes and increased regulations have heavily impacted the sector.
For example, the Government introduced a 2 per cent stamp duty surcharge in October 2024.
This surcharge is in addition to the 3 per cent landlords already pay.
This change adds thousands of pounds to the cost of buy-to-let and second home purchases.
Labour’s Renters’ Rights Bill is also expected to become law later this year.
The bill will end ‘no fault’ evictions under section 21.
It will restrict landlords to one rent increase per year.
It also bans the practice of ‘rental bidding’ and includes several other tenant protections.
Over the past nine years, about 300,000 rental homes have been lost in the UK.
Despite more investors selling than buying, many still see buy-to-let as a sound investment.
They believe property values tend to rise over time.
Rising rents also provide steady income while waiting for capital growth.
The Market Financial Solutions survey found that just over half of respondents agreed real estate is a safe and stable investment.
Three in five adults believe property investment is an effective way to build long-term wealth.
Thirty-seven per cent said they would rather invest in property than stocks and shares.
For many investors, buy-to-let acts as their pension plan.
They expand their portfolio while working and enjoy income in retirement.
While once a credible alternative to stocks and shares, higher taxes have made buy-to-let margins tighter.
How Much Do Landlords Make When They Sell?
Recent analysis by Hamptons shows landlords in England and Wales earned an average profit of £103,640 in 2024 when selling properties.
This represents a 70 per cent gain over 11 to 12 years.
The profit depends heavily on purchase location and price.
For example, London properties bought in 2009 more than doubled in value.
In contrast, landlords in Middlesbrough saw just
