Accidental landlords are a dying breed, according to one mortgage expert, who blames government policy for their eventual demise.

Carol Smith, a Runcorn-based mortgage and protection advisor, says as regulations become more restrictive and costs are stacking up there’s a clear strain on buy-to-let clients and a distinct cooling-off in landlord interest, especially among accidental landlords.

“I think the government almost wanted to get rid of what we called the old accidental landlords. And yes, that’s definitely worked,” she tells Mortgage Introducer.

“I’ve got a lot of investors that I’ve worked with for 15, 20 years that are sitting there at the point of going, ‘I’m not sure this actually works for me anymore’,” adds Smith. For many, changes in capital gains taxes and diminished returns are prompting landlords to ask tough questions about the future of their property investments.

Serious concern

Selling off parts of their portfolios is also becoming a serious consideration for some landlords and Smith acknowledges this is a challenge she approaches with caution, guiding clients toward professional advice.

She believes some investors will pivot to other property types and investment methods to adapt to the shifting economic pressures and suggests considering alternatives such as HMOs or multi-unit properties, which often yield better returns in the current climate. Corporate structures can also offer benefits.

But despite the current pressures, Smith believes the real estate market will continue to be a worthwhile venture for those with long-term goals. She advises: “It’s the long-term gain - and not making too many rash decisions. It goes through cycles. Keep with it and get the best products you can.”