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 Agents should not all look the same
Estate Agent Talk

When Estate Agents Decide to Go Solo

Leaving an established estate agency to work independently gives experienced agents more control over fees, client service and working hours. It also brings responsibility for compliance, cash flow and every part of the customer experience. Before handing in your notice, test the idea against realistic sales volumes, local competition and the amount of time you…
Read More →
Estate Agent Talk

What Should Buyers Ask Before Reserving a New Build?

Research from Skipton Building Society has found that 44% of aspiring first time buyers would rather buy a new build than an older property, with just 30% favouring an older build. Modern fittings and appliances were the biggest draw, cited by over half of those who preferred a new build, alongside the promise of lower…
Read More →
Breaking News

The UK cities with the largest property price increases revealed

A new study has unveiled the most challenging UK cities for first-time buyers. Newry leads Northern Ireland’s ranking, with a property price increase of 12.8%, while Hull leads Great Britain’s ranking, recording an increase of 6.6%. The research examined data from HM Land Registry to reveal the cities that have faced the highest property price…
Read More →
Breaking News

The UK’s Most Expensive Property Hotspots Revealed

More than one in three homes sold in Camden last year fetched at least £1 million, making it the UK’s leading million-pound property hotspot in a new study of England and Wales. But despite London’s dominance at the top of the rankings, the research reveals a surprising trend: median sale prices in several expensive London…
Read More →
Breaking News

Lloyds House Price Index – October 2026

House prices in October 2026 were 1.2% lower compared to the same month a year earlier. House prices fall in October as market remains subdued • House prices fell by -0.6% in October, following a -0. 1% decrease in September • The average property price is now £29 6 ,285 , compared to £29 8…
Read More →
Breaking News

Britain’s most affordable towns revealed

Britain’s most affordable towns revealed, where homes cost less than two years worth of household earnings   Zoopla reveals 36 British towns where a typical home is worth less than twice the combined annual earnings of two local full-time workers Across Great Britain, a typical home costs 4.3 times annual household earnings, compared with just…
Read More →