Bleak future for BTL landlords with mortgaged properties.

January 11, 2016

The attack on the buy-to-let sector by the government since the election is certainly having its effect, new regulations and crippling taxation are putting investors who purchase mortgaged properties into a position whereby they are set to lose money within 5 years, regardless of which region they intend to invest in, that is according to analysis by The Telegraph

By using current house price, rental and mortgage rate data, the calculations suggest landlords who borrow a typical 75% of a property price today will be losing money each month by 2021 in 10 out of 11 British regions, including London.

The changes in  taxation due to come into effect in 2017 whereby landlords will no longer be able to deduct mortgage interest from rental income will make a significant dent in any profits they may make, add to that the possibility of interest rates rises and further regulation to buy-to-let lending over the coming years makes for a bleak future for some buy-to-let landlords.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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