British Landlords Worse Off Than Majority Of European Countries
According to a recent story in The Telegraph, British Landlords are worse off than EU countries for buy-to-let investment because of the intolerable stamp duty hike.
In the last twelve months the UK has plummeted down ten places in the EU league table for the best countries to invest in buy-to-let property from 15th to 25th.
The research also shows that UK landlords’ average yield has fallen down from 4.91% to 4% over the past year.
With landlords having their profits slashed by the stamp duty changes they have been further ‘punished’ by the government’s phasing out of the mortgage interest tax relief which started this year, when only 75% of the interest can be taken off of the profits. The subsequent years until 2020-21 tax year will see the rate decreased annual buy 25 % until it will be wiped out entirely by the end of 2021.
The Telegraph is taking the fight to the government to abolish the additional 3% Stamp Duty and the ever present media ‘darling’ ,Mr. Jacob Rees Mogg MP, has stated that the duty should be cut, “as a matter of urgency” as it hindering the economy.
The situation for landlords is becoming even more ‘depressive’ by the tougher lending criteria for BTL lending rules coming into force.
WorldFirst who are international payments experts produced the league table and used the government’s surveys and statistics to base their results on.
Ireland is the number one country for landlords and boasts an average rental yield on £7.08%, Malta, Portugal and the Netherlands are also enjoying high yields.
According to the survey Britain has even fallen below Finland, Greece and Italy as one of the worst places throughout Europe to invest in BTL properties.
Unfortunately the UK ranks in the bottom five and those countries that have lower yields are Austria, France, Croatia and Sweden.