New research has revealed that confidence amongst buy-to-let investors has dropped over the last three months as a result of falling house prices and rising taxes .
A survey carried out by lettings agent network LSL Property Services found that the percentage of UK landlords who believe it is a good time to invest in property has dropped from 48 per cent in the first quarter of the year to 42 per cent.
A fifth of those landlords polled said they are planning to exit the sector altogether, which is an increase of 6 per cent from the first three months of the year.
According to LSL, falling UK house prices and increases in capital gains tax are to blame for the dent in confidence as both affect the amount of profit a landlord can make.
However, the group said confidence among buy to let landlords is still relatively high, with a just under a third planning to add to their portfolios over the next twelve months.
LSL's David Newnes said: "Rising rents and house prices offered landlords bumper annual returns at the start of the year, and this was reflected in the surge in confidence. This has fallen slightly following the slowdown in house prices and the capital gains tax hike."
"But the vast majority of landlords remain committed to buy-to-let. Attractive rents, just £12 per month shy of their peak, and increasing yields underpin their confidence in property investment ."
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