According to the Council of Mortgage Lenders (CML), the buy to let sector could be heading for a big slump. Changes to the way landlords are taxed is having an effect on an otherwise strong market and the CML believes that the number of people investing in buy to let property is likely to fall over the next few years.<\/p>\n
Landlords Considering their Future<\/strong> The CML says buy to let transactions account for 9% of all property<\/a> being bought and sold in the UK and 16% of mortgages during 2015. This is a lot lower than in 2006 \u2013 2008. Then the property market became increasingly overheated just before the big financial crash of 2009.<\/p>\n \u201cFuture prospects are closely tied to potential macro-prudential regulation and incoming tax changes. We currently expect buy to let house purchase activity in 2016 to fall below its 2015 level, and for activity in 2017 to fall below the level seen in 2014,\u201d says the CML.<\/p>\n Many Landlords to Sell Up<\/strong> According to the Council of Mortgage Lenders (CML), the buy to let sector could be heading for a big slump. Changes to the way landlords are taxed is having an effect on an otherwise strong market and the CML believes … Continue reading
\nLandlords no longer receive higher-rate mortgage<\/a> interest tax relief and anyone owning a second property will be subject to 3% stamp duty from next April. This, in conjunction with warnings from the governor of the Bank of England that extra restrictions might be placed on landlord lending in order to dampen down the sector, mean than many landlords are considering their future.<\/p>\n
\nIt seems likely that many landlords will be looking to unload their properties before the new stamp duty changes kick in, which will cause higher activity levels in the first quarter of 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"