A new survey has revealed Londoners are mostly positive about the possibilities of buy-to-let as an investment with 82% believing it would be a good investment.

The survey, which was carried out by Perrys Chartered Accountants and covered the whole of the UK, also revealed that uncertainty due to Brexit (33%) and increased tax and stamp duty rates (38%) were the main reasons why Londoners are put off investing.

Unsurprisingly, the most likely type of property a Londoner would consider for a rental investment would be a flat or apartment, with 46% of respondents picking this option, a higher number than any other region with only Scotland coming close. 30% would choose a two-bedroom house and 17% a house with three bedrooms or more. However, only 4% would choose a one-bedroom house, probably reflecting the better value for money which a flat or apartment would achieve.

There’s no doubt that stamp duty is a major issue, as although it is zero for properties under £125,000 (for those who do not own any other property), a prospective purchaser is unlikely to find anything in this price bracket in London. Other reasons cited fear that there wouldn’t be enough return on investment from a rental property (15%), and 14% stating that difficulties obtaining a mortgage would probably be an issue.

The largest factor influencing Londoners in a decision to buy a rental property would be a reduction in stamp duty and other relevant taxes, with 43% of respondents citing this as their biggest encouragement, a higher proportion than anywhere else in the country. 30% mentioned a better choice of mortgage products as being an inducement, with 26% more likely to consider an alternative to the traditional rental market such as Airbnb.

45% of Londoners thought a buy-to-let property could be utilised as a pension, which is fewer than respondents in all other areas of the country other than Northern Ireland, which could be explained again by the higher proportion of younger people concentrated in the London area. 32% would like to use buy-to-let income as a replacement for their current income, while just 24% saw it as an inheritance for their family.