The government needs to do more to support buy-to-let landlords, and start by reversing recent tax increases and unnecessary regulation in the buy-to-let sector, it has been suggested.
There has been a significant drop in the number of buy-to-let transactions following the government’s outright assault on buy-to-let landlords, with haart, one of the UK’s largest independent estate agents, recently reporting that the volume of buy-to-let transactions across England and Wales had more than halved over the past 12 months, following the introduction of a raft of measures that have deterred many people from investing in the private rented sector.
Jenny Mayes from Simple Landlords Insurance is among those urging the chancellor Philip Hammond to listen to landlords’ concerns.
She said: “Landlords should be supported and recognised for their contributions in providing affordable housing, rather than burdened with unfair tax measures that will see them having to take considerable cuts to their income and being forced to pass some of this to their tenants.”
A Landlord Voice survey conducted by Simple Landlords Insurance this month found that the number one New Year’s wish from landlords is for the government to keep buy-to-let tax relief on mortgage interest payments.
The survey revealed the planned tax increases are the top concern for landlords in 2017, voted for almost half - 47% - of respondents. Landlord’s second biggest wish for the New Year would be for an end to higher stamp duty charges, while in third place was a reduction in capital gains tax.
Bevan Smith, director of BPM Estates, commented: “2017 is going to be an interesting year and I think we are yet to really see how potential changes are going to impact the rental market.
“Brexit and the US elections aside, it is likely to be changes to landlord taxes and mortgages that will really influence the market place.
“Investing in residential property is becoming increasingly expensive and I wouldn’t be surprised if we see landlords sell of parts of their portfolio. This could be good news for the buyer-occupier market, but will likely mean less supply for the rental market, which could in turn lead to higher rents.”