With just three weeks to go until the 3% stamp duty hike on buy-to-lets and second homes kicks in, research suggests landlords are putting off adding to their portfolios or selling up.
Property crowdfunding platform Property Partner found that nearly six in 10 (59%) landlords surveyed say they are shelving plans to make further investments in traditional buy-to-lets, or are even planning to sell some of their existing properties.
Surprisingly, given the extensive media coverage, many landlords still seem unaware of the full implications of the combined government measures about to be implemented. Tougher mortgage lending rules kick in on 21 March, quickly followed by April’s stamp duty hike, with mortgage interest tax relief being phased out from 2017.
Yet 27% of landlords surveyed by Property Partner, had little or no awareness of the radical changes to their financial fortunes in the pipeline.
Dan Gandesha, CEO of Property Partner, said: “On the evidence of our research, landlords are deeply divided over how to respond to the government’s clampdown on buy-to-let.
“A significant minority are desperately buying up available stock to beat the April stamp duty deadline, causing a surge in prices. Do these people really understand how the government’s tax changes will impact their profits?
“Luckily the majority of landlords are taking a much more cautious view, with many choosing Property Partner as a better way to access residential property investment, without the hassle, expense, or tax implications.”
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