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

Estate Agent Talk

Castles, cottages, vineyards and barn conversions

The latest data from LandSale has revealed what buyers can expect to pay, and how much they can get for their money if they want to escape to the country, with castles, vineyards, barn conversions, and cottages currently offering very different routes to rural living. The analysis draws on LandSale’s internal listing data and examines…
Read More →
Breaking News

Poor property maintenance could wipe £59,000 in value

The latest research by property management specialist, Rushbrook, has revealed that landlords who fail to adequately maintain their rental properties could see as much as £30,172 wiped from the value of the average buy-to-let investment across England, with this potential loss climbing to almost £59,000 in London.   Rushbrook analysed landlord-specific property values across each…
Read More →
Breaking News

Breaking Property News 20/8/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   Why Angela Rayner Housing Secretary is in the wrong job – again   A smile, bluster and vague soundbites will not solve the UK housing crisis  Thought Leadership by Andrew Stanton – CEO Proptech-PR  ‘I have been involved in the UK property industry since the mid 1980’s…
Read More →
Breaking News

Buyers Looking Beyond London

London new-build demand plummets behind commuter belt as buyers look beyond the capital   Demand for new-build homes in Essex more than three times higher than in London, while Hertfordshire faces supply squeeze amid growing buyer appetite   The latest research by UK Property Development has revealed a growing divide between London’s new-build market and…
Read More →
Finance

Top six tips for first-time buyers

Independent mortgage broker, Flagstone Financial, has outlined key advice for first-time buyers, pointing to flexible options as signs of an improving mortgage market.   With high loan-to-value lending (80–95%) becoming more widely available, the property ladder is more accessible than in recent years, and experts at Flagstone Financial, partner of the Beresfords Group, are advising…
Read More →
to let sign 2025
Breaking News

England’s rental stock surges by as much as 86.6% in a year

Rental listings have almost doubled in Tyne and Wear since August 2025, with Greater Manchester and a host of other markets also recording double-digit growth   The latest research from Propoly has revealed that England’s rental listings have climbed by an average of 7.4% in the past year, led by an 86.6% increase in Tyne and…
Read More →