Reasons to be cheerful (even if you're involved in buy to let)

It is fair to say that at the back end of 2015 property investors and landlords could have been forgiven for going a little off radar after the Chancellor took a sizable swipe at the private rented sector. The reasons for being a little disillusioned have been plain and simple - We have had the Right to Rent proposals, the ongoing saga with HMO and additional licensing for landlords, the likelihood of mortgage constraints and the removal of tax breaks. And then just as you thought it couldn't get any worse good old George throws the increase in Stamp Duty Land Tax at us. It is enough to make even the most experienced landlord down tools and walk away.

But the way I see it there are at least a few reasons to feel optimistic and hopefully enough to ensure the majority of landlords continue to keep the faith:

Firstly the Office National Statistics (ONS) are forecasting significant growth in the UK population and that it is to go beyond 70 million in the next 12 years. This growth is both direct and indirect based on migration and procreation.

How might this be of benefit to landlords I hear you ask?

Well statistics show that the migrant population are heavily into the rented sector rather than purchasing property. This would mean a surge in the rented market and certainly in areas of high employment.

On another note recent research shows that the renting population has become very diverse in recent years, so no longer are you just seeing 20 somethings taking up rented property. Increasingly it is stretching across the entire spectrum from 40 and 50 years olds to couples and families alike. 

Thirdly—as has been explored before – the swelling population of the UK will easily outpace the supply of purpose-built institutionally-funded homes, thus confirming that there is room for Build To Let without damaging Buy To Let. They can operate side-by-side.

All of this suggests what I and we all know already - that the private rented sector provides an invaluable service to the public and as our population grows I expect this to become more and more apparent. If I am right then hopefully in time Mr Osbourne may reflect on his recent announcement as a job not very well done. Either way I still think there is cause for optimism amongst landlords and I don't necessarily share the notion that selling prior to April 2016 will spike on a consistent level nor do I think the majority of landlords will be discouraged from purchasing for investment either.

Only my opinion of course.