New research has revealed that the majority of residential landlords in the UK do not intend on buying or selling any buy-to-let properties during the next five years.
Three-quarters of all respondents to a new survey conducted by the Council of Mortgage Lenders (CML) said they were going to be inactive in the market. Of those that did say they would be busy, 8% planned to purchase while 15% said they would sell.
In London, these figures stand at 13% and 9% respectively.
The survey sought to give an insight into how landlords are coming to terms with changes in the lettings sector and how tax changes are altering the market.
Results indicate that largely, landlords in London are extremely similar to those in the rest of the UK. However, those in the capital are more likely to make different decisions on financing, managing and adding to their portfolios.
In comparison to the rest of the UK, landlords with properties in London have greater disposable incomes, are more likely to work full time and become landlords at a younger age.
Nearly 50% of landlords in the capital have at least £1,000 of monthly disposable income. Outside of London, just one-third of respondents recorded this level of income.
London landlords are 27% more likely to be in full-time employment, while 37% are less likely to be retired than landlords in the rest of Britain.
Typically, the age of a first-time landlord in London is 42, compared to 47 in the rest of the UK.
79% of landlords in London have flats to let, in comparison to just 40% renting out this type of property elsewhere.
60% of landlords in the capital own a single property, with a further 20% owning two. This is a similar ratio to the rest of the UK. In addition, the amount of UK landlords (60%) offering tenancies of longer than a year varies little across all regions.
Landlords in London are more likely to have purchased a buy-to-let property with a mortgage, while 15% bought with cash, a figure rising to 23% outside of London.
Nearly half of landlords in the capital had a buy-to-let mortgage on at least one rental property, compared to 35% outside of London.
The use of a letting agent is more common in London, although landlords here are less likely to go for full management. 70% of landlords in the capital employ an agent in some form, with around 40% entrusting them to manage all aspects.
Choosing to incorporate is still fairly uncommon, in and out of the capital. Just 6.2% of landlords in the capital are incorporated, as opposed to 2.8% outside of London.