Continued assault on Buy-to-Let

The continued assault on buy-to-let is now having its affect, landlords are already feeling somewhat deflated as they question the viability of their business and are now considering their positions regarding their buy-to-let investments, the last attack on landlords was the increase in stamp duty to be introduced next April for buy-to-let and second homes.

Adrian Gill, director of Your Move and Reeds Rains is reported as saying, one in ten UK landlords is considering selling up.

He reportedly said: “Landlords could be forgiven for feeling a little deflated at the moment, and it’s worrying to see this may motivate many to reconsider their investment,”

“The government’s tax changes appear to be making investing in buy-to-let less attractive because of the seemingly smaller profits margins on offer in the future. If a 10th of landlords do decide to leave the industry, this would seriously shrink the number of properties available for tenants.”

The changes in  mortgage interest relief for landlords, the increase in controls over who and who not a landlord may rent their property to, which in effect forces landlords to act like immigration officers, increased regulations to health and safety (this has to be a positive) and now the 3% stamp duty all serve to deter existing landlords from remaining in the business and put off  those that may be thinking of entering.

Not only is the  private rented sector  an essential contributor to the country’s housing supply but government figures show  of the 3m new dwellings created in England between 1996 and 2013, 83% were private homes to rent, Ministers have acknowledged that the private rented sector provides the housing needed to support and encourage a flexible labour market.

Research conducted for the Residential Landlords Association (RLA) has also shown that each tenancy in the private sector nets the Treasury in the region of £1,000, Buy-to-let is a net contributor to the government’s coffers.

Mr Wilson probably Britain’s best known landlord announced only this week the departure of himself and his wife from the buy-to-let business, he reportedly told the Financial Times that changes in taxation and mortgage lending mean that it would now be impossible to build up a property empire like he did.

 

 

 

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.

You May Also Enjoy

Estate Agent Talk

How can Cash House Buying Agencies thrive in 2022?

Like many other industries in the world, the UK property market is constantly evolving. Industry players therefore need to keep a keen eye on the key markers that define the state of the industry. As 2022 ushers in new changes and realities, industry players like cash house buying agencies need to arm themselves with current…
Read More
composite gates
Home and Living

Composite Garden Fencing / Gates – Pros & Cons

As much as many of us enjoy great relationships with our neighbours, we do also relish privacy between our properties / boundaries. Years ago I remember rows of gardens with no more that a wire fence with wooden posts separating each with some having missing sections and even those totally without. Many neighbours would have…
Read More
Breaking News

BREAKING PROPERTY NEWS – 30/06/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   Zoopla names new members of its Lettings Advisory Board, selected to support its goal to help inform how industry responds to a fast-evolving policy environment for agents, landlords and renters Zoopla, the UK’s most comprehensive property destination, is pleased to announce new members of…
Read More
Estate Agent Talk

Why Your Multifamily Building Needs An Access Control System

Being responsible for a multifamily building requires keeping safety a priority. Security can be a concern in a building with multiple people coming in and out, which is why your multifamily building needs an access control system. There are many reasons why an access control system can be of use to a dwelling with more…
Read More
empty property uk 2022
Estate Agent Talk

How many empty homes are there in England?

The total number of empty dwellings as at 13 September 2021 was 468,000 – a decrease of 11,000 or 2.4% on the previous year as quoted on the official government website: Local Authority Council Tax base England 2021 Long term empty homes are dwellings which are unoccupied for a period of 6 months or more…
Read More
Breaking News

New Research from TwentyEA Shows Available Stock Has Almost Halved Compared with Five Years Ago

Despite the fact that UK inflation has hit a fourty year high of 9%, agents across the UK are still seeing demand for properties outstripping supply, with new instructions largely flat during May, according to a recent RICS survey in June 2022. The RICS survey also suggests there is little prospect of more homes coming…
Read More