BTL Index report from Your Move and Reeds Rains
According to the latest Buy-to-Let Index report from Your Move and Reeds Rains,
Flurry of buy-to-let property interest in March pushes total annual returns to 12.2% for existing landlords.
Across England & Wales rent rises average 3.0% over the last year, to now stand at £791 per month.
Midlands powerhouse pushes record rents, reaching £597 in West Midlands and £613 in East Midlands.
Minority of tenants still feeling financial squeeze, with 9.1% of rent in arrears, up from 8.8% last month.
Adrian Gill, director of lettings agents Your Move and Reeds Rains, comments: “New tax changes intended to benefit owner-occupiers are now makingit more expensive to become a landlord, at least for the time being. Ultimately this will only punish tenants and aspiring first-time buyers – driving out buy-to-let landlords will reduce supply leading to lower choice and higher rents for those that can least afford them.
“In particular, this month’s new stamp duty surplus has driven an extra wedge between those aspiring landlords planning to invest in additional homes to let, and those existing landlords who have already built up their portfolios. That difference will not last for long. But b y making it more expensive to invest in property, it will hamper the healthy growth of the private rented sector. Over the longer – term there will still be a sharpening shortage of homes available, and rents will rise in line with any extra costs – so being a landlord will remain a profitable investment, though tenants will just see unnecessarily higher rents in order to price – in the extra bill forthe taxman.
“ In the short-term, there has also been a scramble to buy property before the deadline. As a result, a flurry of interest from property investors has boosted values, and delivered a bonus for existing landlords through faster capital growth. In search of political points, the Chancellor would do better to help tenants rather than punish landlords – but the most
ironic part of the new tax regime is the additional bonus to the wealth of current landlords.”
To read to the full Buy-to-Let Index report on the LSL Property services website click here
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