The government’s decision to introduce a raft of changes, including buy-to-let tax hikes, to create what the former chancellor George Osborne described as a “level playing field” between homeowners and investors, has so far failed to deter the vast majority of private landlords, new research shows.
From a landlord’s perspective, it has been a tough couple of years, with various measures introduced to curb the growth of buy-to-let investors.
Aside from the introduction of the stamp duty surcharge in April last year, the 10% wear and tear tax relief for landlords who rent out furnished homes has been abolished, leaving them free to only claim for the amount that they have spent, while mortgage tax relief is set to be phased out from next month.
In addition, the Bank of England’s Financial Policy Committee has now been granted greater powers over the buy-to-let market, which has made it harder to get a mortgage.
So whilst investing in property has long been perceived to be a safe alternative to the failing of the pensions industry, the reality is that for some people buy-to-let suddenly looks like an unattractive proposition.
But new research by Simply Business has found that the vast majority of landlords - 83% - are not put off by these changes and still believe there is a future for landlords in the UK.
However, almost half - 48% - of landlords think it is getting harder to keep going, even if they do not intend to quit investing in the private rented sector.
Moreover, 12% think it is only possible to be a landlord in Britain if you are already established.
Despite some negativity, more than one in five - 22% - of landlords are completely undeterred and think the idea that there might not be a future for landlords in the UK is nonsense.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
Those landlords undeterred are they the ones who don't have BTL mortgages?
Anyway rents are sure to rise steeply because of all this. The Government are indirectly attacking tenants using Landlords as their vehicle.
Yes Landlord today is often guilty of just throwing a story out there where the experience I am aware off is very different.
I know many people who were once very active in the market, now not interested at all and indeed will sell off their properties before they wold purchase. Less choice in the market means one thing... Higher rents...
I would suggest that Landlord's returns are set to fall, rather than rents go up.
I don't know where Landlord Today got this story, but it is absolute nonsense. Apart from the large professional Ltd companies, every landlord is concerned, and a significant percentage cannot see a future for them in BTL. Personally, I have already sold one property in London because the income and mortgage would have resulted in a significant increase in personal taxation. It went to an older couple who had downsized, bought a country cottage, and wanted a London pad. Contradiction of the Government's view that their attacks on the small BTL landlord will level the playing field and benefit FTBs.
I think there will be more voids if people put up rents. Wages have stagnated for years and rents are high, there is no room for rent rises, hence the more voids. In addition landlords have record low mortgage rates so have room for the tax changes unless they have purchased recklessly.
Please login to comment