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

Breaking Property News 21/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   VE+ the new procurement engine cutting developers costs without compromise Finishes packages are specification sensitive and expensive components of any build – VE+ fixes this  As construction costs continue to climb and procurement timelines tighten, developers and contractors are being pushed harder than ever…
Read More →
Breaking News

Inheritance Tax Receipts raise £5.2 billion in seven months

Inheritance tax (IHT) receipts hit £5.2 billion in the first seven months of the 2025/26 tax year, according to data released by HM Revenue and Customs (HMRC) this morning. This is £0.2 billion higher than same period of the previous tax year and continues an upward trend over the last two decades. Nicholas Hyett, Investment…
Read More →
Breaking News

FMB calls on Reeves to scrap housing tax threat

The Chancellor needs to scrap the Government’s proposed landfill tax quarry exemption which will add up to £28,000 to the cost of homes on small sites in next week’s Autumn Budget, says the Federation of Master Builders (FMB). Brian Berry, Chief Executive of the FMB, said: “At a time when the Government is failing to…
Read More →
Breaking News

Full Steam Ahead! UK Construction to return to growth in 2026

Construction intelligence specialists predict renewed activity following false-start over the summer. Revised figures will see UK construction sector grow 21% over the next two years Private housebuilding remains on course to grow significantly, with activity still predicted to rise by almost a fifth in 2027 Commercial office starts set to continue their ascent, and increasing…
Read More →
Breaking News

Winter is Coming: Douglas & Gordon Warns Landlords and Tenants to Take Action Before Disputes Occur

Mould, damp, burst pipes and boilers on the blink? With temperatures set to plummet in London this week, real-estate agent Douglas & Gordon is advising landlords and tenants to take action before issues occur. With 45% of landlords experiencing arrears or disputes, often linked to property condition or delayed maintenance* the agent’s expert lettings team…
Read More →
Breaking News

Home sellers slashing asking prices amid Budget speculation

The latest research from Property DriveBuy reveals that homesellers are slashing asking prices across the country in an attempt to attract buyers in a stagnant pre-Budget housing market. The latest asking price data* shows that the average asking price in Britain (£364,833) fell by -1.8% between October and November 2025, contributing to an overall annual…
Read More →