Mortgages

54% of buy-to-let investors considering selling due to regulatory changes

Rozi Jones
|
17th April 2018
BTL buy to let
"The detrimental combination of increased stamp duty and the removal of interest relief offset is evidently taking its toll on landlords."

54% of buy-to-let landlords are considering selling all or some of their buy-to-let properties due to regulatory changes over the past year, according to Property Partner research.

The survey found that over two thirds have had their finances negatively impacted by mortgage interest relief changes, 59% have been impacted by increased stamp duty on second homes, and 44% have been financially impacted by harsher mortgage affordability checks.

47% have therefore increased or are considering increasing rents to offset additional buy-to-let costs.

Rob Weaver, director of property at Property Partner, said: “One year on from the Government’s big shake-up of buy-to-let investing, the detrimental combination of increased stamp duty and the removal of interest relief offset is evidently taking its toll on landlords.

“Our own research shows the mortgage interest relief changes have hurt landlords most, with nearly two thirds of landlords having had their finances negatively impacted by changes.

“Far from making property more affordable and available to first time buyers, it’s becoming clear that the crackdown on buy-to-let landlords will hit the pockets of renters most. Nearly half of landlords are increasing rents in the face of new buy-to-let rules.

“At a time when increasing numbers of people rely on the rented sector, the Government can no longer divert its attention from the real threat of a full-blown housing crisis. The only way to make the UK’s housing market more efficient is to stop fiddling with demand-side policies and hold the government to account on its promise to build 300,000 new homes per year for the next ten years.”

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