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Upcoming tax changes not deterring many landlords
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A new survey of 170 property investors has revealed that many are not being deterred by the forthcoming changes in stamp duty land tax.
The investigation by Shawbrook suggests that 56% of their clients are looking to purchase a buy-to-let property within the next year.
Tax changes
With the tax changes fast approaching, the survey also revealed that 40% of investors plan to launch a limited company for their properties to soften the impact. 33% said that they planned to increase rents as a result of the alterations.
These new changes to both stamp duty and tax relief have led many investors to reassess their ambitions. Of the 44% of people who said they did not plan on purchasing a new buy-to-let property in the next twelve months, 37% said this was due to the tax relief changes. 16% said that the 3% stamp duty levy on second homes and buy-to-let properties was the reason they will not be investing.
Issues
In addition, the changes show that 49% of clients believe regulation to be the largest challenge facing property investors during the next six months. This is a huge jump from the same time last year, where only 23% of investors believed regulations to be their biggest investment hurdle.
Upcoming tax changes not deterring many landlords
Encouragingly, despite the changes, 61% of respondents said that they had a positive outlook for the next year. This proportion believe there will be an increase in property value over the coming year. 43% said they saw an increase in tenant demand in 2015, with 61% saying their rental income also rose.
44% said that they were confident their business would grow further during 2015.
Positivity
Karen Bennett, Sales and Marketing Director Commercial Mortgages noted, ‘as a lender, it is always great to see such positivity in the market and as with our Broker Barometer conducted in late 2015, it seems that there is a lot of optimism amongst property professionals also. Obviously the new changes will have an effect and may instill more caution across the market; however, Shawbrook is well-placed to adapt to change and we are expecting the market to remain buoyant.’[1]
[1] http://www.propertyreporter.co.uk/landlords/majority-of-btl-investors-say-its-business-as-usual-despite-tax-changes.html
