So far, the chancellor\u2019s tax relief and stamp duty changes have not made any difference to landlords\u2019 behaviour. The sector is still going strong and despite dire warnings, there does not appear to have been a mass property sell-off from landlords. However, credit ratings agency, Fitch, is warning that within two years, the cracks will start to show.<\/p>\n
Changes Will Affect Landlord Behaviour<\/strong> According to a report Fitch has made to its investors: \u201cIndustry surveys suggest that existing landlords are less likely to add new properties when the tax<\/a> changes take effect, and some may look to sell. Our gross new mortgage<\/a> lending forecasts for UK incorporate the potential for the announced changes to slow the growth in BTL origination.\u201d<\/p>\n Bank of England PRS Proposal could Curb Landlords<\/strong> \u201cThe proposal does not set limits on loan-to-value, debt-to-income, or interest coverage ratios [but] if these were adopted, this could make BTL less attractive for landlords if rental yields do not rise sufficiently to offset the impact of such affordability rules,\u201d Fitch says.<\/p>\n","protected":false},"excerpt":{"rendered":" So far, the chancellor\u2019s tax relief and stamp duty changes have not made any difference to landlords\u2019 behaviour. The sector is still going strong and despite dire warnings, there does not appear to have been a mass property sell-off from … Continue reading
\nFitch says the UK PRS is currently in a strong position, with low arrears and voids, combined with a shortage of new housing stock. Despite this, the agency says the recent changes will soon start to affect landlord behaviour and the PRS is unlikely to be as healthy within two years.<\/p>\n
\nFitch is also concerned about a recent proposal put forward by the Bank of England to \u2018rein in\u2019 landlord lending, in an effort to control potential instability in the sector.<\/p>\n