Buy-to-let alterations will lead to a ‘hike in rents’

One of the most respected rental sector analyst’s in Britain has warned that tax changes for landlords could backfire on the Government.

Kate Faulkner believes that upcoming alterations in Stamp Duty and second home surcharges will come back to haunt George Osborne.

Changes

The Chancellor is bringing in both measures with the intention of improving opportunities for first-time buyers, which could otherwise be purchased by buy-to-let investors.

Other onlookers feel that these measures aim to encourage institutional Build To Rent investors, in an attempt to improve the quality of Britain’s private rental sector.

Faulkner however believes that while the upcoming policies may get a small number of would-be buyers onto the ladder, there are large downsides.

Buy-to-let alterations will lead to a ‘hike in rents’

Ignorance

‘Those who need to rent-students, overseas, people in debt, those waiting for social housing-are likely to see a hike in rents. And If buy-to-let reduces, the tax expected to be raised from the increases may not be then able to fund the first time buyer initiatives,’ she stated.[1]

‘So why on earth is George Osborne ignoring the money that investors could put into building instead of buying existing homes? Many landlords with £100,000-plus could help to create new homes. So where are the mini Build To Rent sector initiatives for smaller landlords who are established and want to continue to expand their portfolio?’ she went on to ask.[1]