Most landlords will hold on to buy-to-let properties
News Category: Industry News
Published: 01-Feb-2008
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Most landlords will not sell their buy-to-let properties, despite the property market slowdown.
That is according to PropertyHawk, which maintained that the majority of landlords would hold onto their rental properties because they saw them as long-term investments.
Chris Horne, editor of the website, suggested that many people purchased buy-to-let properties for their pensions.
He added that landlords would be put off by the "logistical side" of selling, saying: "It's very costly; you've got to pay solicitors' fees, estate agents' fees, capital gains tax potentially and then set up the investment on your side."
"You can be looking at spending ten per cent of your capital sum just by buying and selling, so even if maybe most landlords realise that prices are heading downwards, they take a long-term view about it all."
According to recent research by ARLA, nine out of ten landlords have no intention of selling in 2008.
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