Landlords in the East of England continue to believe in the financial benefits of letting, despite fears that many would sell their properties in order to cash in on the recent tax changes, according to the RICS Residential Lettings Survey.
The survey, which asks surveyors to estimate the percentage of landlords who are planning to sell at the expiry of tenant leases, found that only two per cent are intending to put their properties on the market.
It seems that the shifting dynamics of the housing market, dropping house prices and the problems many potential purchasers are having trying to find a mortgage, has discouraged landlords from selling.
The results also suggest that sharply rising rents are giving landlords another reason to hold onto their properties.
RICS East of England member Stuart Harris, partner of Carter Jonas LLP, said: “Throughout the debate into the state of the housing market and how this affects investors and buy-to-let, we are seeing clear proof that there is no such thing as a 'national' property market.
"The bigger picture is made up of a patchwork of local markets and, in these more uncertain times, investors are concentrating on the more reliably resilient areas such as the East of England.
"The continued belief in safer market areas, coupled with the improving yields available to investors, has resulted in not only them remaining in the market, but for that market to show signs of growth.”
The figures also dispel the fear that the housing market will have to cope with a sharp increase in new properties from the buy-to-let market.
Simon Rubinsohn, RICS chief economist, said: "Fears that landlords would take advantage of the more favourable capital gains tax regime to bail out of the buy-to-let market appear misplaced. Significantly, with the reduction in loan to value ratios by lenders leaving first-time buyers struggling to access the housing market, rents are now rising sharply and the expectation is that this trend will continue.
"Only two per cent of landlords are currently planning to sell properties at the expiry of tenant leases. The incentive to cash in on the lower tax rate is being outweighed by attractive yields."
