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

AI in estate agency letting agency property
Estate Agent Talk

AI property search not yet mainstream

The latest research by GetAgent.co.uk has revealed that while artificial intelligence is increasingly being embraced across the property industry, the technology has yet to become a mainstream tool for buyers and sellers when it comes to searching for and marketing homes. GetAgent commissioned a survey* of UK estate agents to understand how widely AI-powered search…
Read More →
Breaking News

70% of Britain’s housing market is in recovery with prices trending upwards

The latest research from Yopa reveals that 70% of the British housing market is now in recovery with prices trending upwards following the challenging conditions of the past two years. This is despite the broader national picture showing that average house prices have edged down over the last six months. Yopa analysed six months of…
Read More →
Breaking News

Breaking Property News 12/3/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   ‘The actual work, making smart procurement decisions, protecting the owner’s budget was buried under a mountain of emails and calls’ Rihards Trops CEO of TenderPro   Every property manager knows the feeling. You need to find a contractor, get three comparable quotes, coordinate site visits,…
Read More →
Breaking News

Renters’ Rights Act already driving surge in tenant complaints

“Renters’ Rights effect” drives unprecedented demand dispute resolution Industry redress scheme flooded with enquiries ahead of Act going live in May   THE IMPENDING implementation of the Renters’ Rights Act has already led to unprecedented demand for The Property Ombudsman’s services, as more tenants seek support to resolve disputes fairly and independently. In the four…
Read More →
Breaking News

Rights Act: Key changes renters need to know — new rules start on 1 May 2026

The Renters’ Rights Act is a major overhaul of the rules that govern renting in England, the biggest in decades. Propertymark, the UK’s leading body for property professionals, wants renters to understand what’s coming and how it will affect them. The next wave of changes under the Act will take effect on 1 May 2026.…
Read More →
Breaking News

What Would Make Me Stay: How Tenants Are Redefining What Home Really Means

68% of tenants say the single biggest factor that would make them stay in their rental home long term is the relationship with their landlord or agent, above rent levels, location, or the quality of the property itself. That is the headline finding from LRG’s Winter 2025/26 Lettings Report, and it points to something the…
Read More →