‘Over half BTL investors to sell some properties’ – claim
Specialist funding platform Property Partner has conducted a survey which suggests that 54 per cent of landlords are selling all or some of their properties.
One of the key reasons is the phased reduction of mortgage interest tax relief introduced last April: 64 per cent of BTL investors have had their finances negatively impacted by the mortgage interest relief changes.
Some 59 per cent say they have been hit by increased stamp duty on second homes while 44 per cent have had their finances negatively impacted by harsher mortgage affordability checks.
Mark Weedon, head of research at Property Partner, says: “The government’s plan is to cool the buy-to-let market in order to increase access to property for potential first time buyers.
“Unfortunately it’s clear many landlords are being forced to consider increasing rents to offset their losses, which could actually hinder those looking to take their first step on the housing ladder.
“The UK housing market remains vastly undersupplied. Attempts to tweak demand with a crackdown on investors will not solve the housing crisis- the real solution is to build more houses.
“We should also remember a number of people in the UK choose to rent and enjoy the flexibility renting provides. Professionalised landlords are central to supporting this group in the UK.”