The future for Buy-to-Let

December 8, 2015

Following the election back in May of this year there was one sector that shined out above the rest in the property industry, that was buy-to-let, how things can change in just over 6 months.

Very few buy-to-let stakeholders would have imagined that when the Conservatives were returned to office without the hinderance of the their coalition partners the Liberal Democrats,  that by the end of 2015  they would have seen so many changesmade in the sector. The Government appears intent on cutting off any growth in the buy-to-let and shifting the housing balance in favour of home-ownership.

Since the election there has been wave after wave of reforms, new regulations and financing changes to the buy-to-let sector. The sector was certainly due a good overhaul regarding the need for regulation and compliance with Health and Safety Issues, the need to rid the industry of “Rogue Landlords” was welcomed by most.

Changes were made to buy-to-let lending brought about by giving  increased powers  to  the Financial Policy Committee, bringing  buy-to-let lending  closer inline with that of the homeowner, such high percentages of loan to value are no longer available for BTL.

Tax changes and now the introduction of increased stamp duty added to the already  long list of other changes is really having a negative effect on the sector, those already in are seriously thinking about  leaving the sector according to various press comments and new comers are now taking a long hard look as to whether this type of investment is now worthwhile.

As with all investments professional advice should be taken before making any decisions. The buy-to-let sector has now become a serious investment and should be viewed as such, the need for letting agents to manage properties and advise landlords as to their responsibilites has never been so important.

 

 

 

 

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

Breaking News

Residential projects remain under pressure

Infrastructure keeps UK construction moving through a sluggish spell Residential and non-residential projects remain under pressure, while infrastructure and utilities work give the industry a much-needed lift The value of underlying work starting on-site during the latest three months declined 2% and stood 18% below last year’s levels. Residential construction starts fell 8% against the…
Read More →
Breaking News

Homebuyers hold tight ahead of Autumn Budget

but should they wait to make their move?   The latest research from Yopa has revealed that mortgage market activity has reversed in recent months, with approvals falling at an average monthly rate of 3.9% over the last four months, having previously increased by an average of 1.5% per month over the previous four months, suggesting…
Read More →
Breaking News

House price growth accelerates in Q2

The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market continued to build momentum during the second quarter of 2026, with UK house prices increasing by 1.1%, while London recorded a second consecutive quarter of positive growth.   The Benham and Reeves Market Index Review…
Read More →
Breaking News

House prices hold steady despite impact of higher interest rates

House prices were unchanged in September (0.0%), following a -0.3% fall in August The average property price is now £298,441, compared to £298,395 in August Prices were also unchanged annually (0.0%) compared with September last year Northern Ireland continues to lead UK annual growth, at +7.4% Latest first-time buyer prices reveal what a 2.5% deposit…
Read More →
Breaking News

Breaking Property News 5/10/26

Daily bite-sized proptech and property news in partnership with Proptech-X. Architect-founded KnowYourNest brings property scores into the home search, with a free 1–10 score and full KnowYourNest reports from £9.95 By Author Andrew Stanton CEO Proptech-PR NestLink today launches free NestScore checks and KnowYourNest property intelligence reports for buyers and homeowners across England and Wales.…
Read More →
Breaking News

Gap between house prices and earnings narrows

Gap between house prices and earnings narrows – but higher borrowing costs limit affordability gains UK’s house price to income ratio falls from 7.6 to 7.3, an 11-year low, as earnings continue to outpace house price growth For first-time buyers, homes now cost less than six times earnings, falling from 6.1 to 5.9 However, monthly…
Read More →