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Over Half of Landlords Postponing Property Investment
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
It’s just over two weeks until the 3% Stamp Duty surcharge on buy-to-let properties and second homes is enforced, causing many residential landlords to postpone further property investment.
Property Partner, a crowdfunding platform, has found that over half (59%) of landlords are halting their plans to make additional investments in traditional buy-to-lets, while some are selling their existing properties.
Over Half of Landlords Postponing Property Investment
Recently, we revealed that in the past six months, the number of landlords in London looking to sell their properties has quadrupled.
Worryingly, many landlords are still unaware of the full impact that forthcoming Government measures are expected to have on their lettings businesses.
On 21st March, stricter lending criteria on buy-to-let mortgages will be implemented. The rules could particularly affect accidental landlords.
Soon after, the additional Stamp Duty charge will be brought in, and from April 2017, mortgage interest tax relief available to buy-to-let landlords will be reduced to the basic rate.
However, Property Partner found that 27% of landlords had little or no awareness of the huge changes that will soon hit their finances.
The CEO of Property Partner, Dan Gandesha, says: “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 is 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?”
He adds: “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.”1
If you are unsure of how the forthcoming changes will affect your property investments, this useful guide from a leading financial expert will help: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/
1 https://www.landlordtoday.co.uk/breaking-news/2016/3/more-than-half-of-landlord-halting-portfolio-investment-plans
