x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Government’s tax changes have led to the ‘sledgehammering of the BTL industry’

Activity in the buy-to-let market dropped further in July as a result of government interventions and a wider housing slowdown, new mortgage lending figures show.

Remortgages have continued to drive lending which, owed in part to increased interest rates and sustained uncertainty deterring homeowners from selling and moving, according to the latest data and analysis from UK Finance, but the figures also reveal a further decline in buy-to-let lending.

Suchit Sethi, the founder of cashbackremortgages.co.uk, said: “It is little surprise that the residential remortgaging market had the strongest July in a decade, as savvy homeowners looked to lock in the best rate ahead of August’s interest rate rise.”

But the fact that new homeowner mortgages are down again compared to last year paints a “concerning picture of the state of the UK housing market”, according to Sethi.

He added: “Buy-to-let mortgages are also down, further evidence that the government’s tax changes have led to the sledgehammering of the BTL industry - arguably perpetuating the housing crisis at the worst possible time.

“The crucial question is will we see any kind of recovery in the housing market before the country gets real clarity over Brexit? Seeing as that might not come until late March, the situation could be grave.”

With tax and regulation changes continuing to have an adverse impact on the buy-to-let market, separate data provided by the Bank of England also shows that the value of mortgages taken out by landlords is falling.

Poll: Given that the PRS now makes up 20% of the housing market, do you think that landlords should be incentivised to continue providing good quality affordable housing to those who need it?

PLACE YOUR VOTE BELOW

  •  G romit

    This faux Tory Government have closed their eyes & ears to the damage they are doing to the rental market, and the misery they are causing to Tenants (who are not traditional Tory voters).
    But they can only bury their heads i the sand for so long, and this WILL come and bite them in the a***e with a vengeance.
    Warning to all Tory MPs (except, maybe, those in ultra safe seats) start looking for another job because come the next General Election ...........................................

  • icon

    Laughably loaded question in the poll.

  • icon

    Yes they are crashing the market for tenants but hiding behind propaganda that it’s all being done to help them ! Chasing generation rent voters but not doing a very good job of it !

  • icon
    • 14 September 2018 09:23 AM

    Most of our tenants never want to a buy their own house. THEY. WANT. TO. RENT.

icon

Please login to comment

valpal
submit
sign up