Could new regulations force investors out of BTL this year?

Could new regulations force investors out of BTL this year?

New research by The House Crowd has highlighted that buy-to-let investors are predicting a stormy ride in 2016, with nearly three quarters (72%) reporting that legal changes to the sector this year will have a negative effect on their investments.

A fifth of investors plan to sell their buy-to-let properties in 2016.  

Previously viewing their investments as a solid base for sensible financial plans for the future, property investors are concerned that they are being increasingly targeted by legal changes like the Mortgage Credit Directive and increase in stamp duty on buy-to-let properties, coming into force this March and April respectively.

The survey of property investors reveals:

    Half say their plans for a secure retirement are now at risk
    A third say it will now be harder to support children and grandchildren to get on the property ladder, or to contribute to university fees
    Over a third (38%) think landlords should look at newer, smarter ways of investing in property


It appears to be investors with a smaller number of properties that are feeling the pinch. Nearly half (43%) feel that the government is trying to squeeze out smaller landlords, protecting wealthy landlords with many properties.

Frazer Fearnhead, founder and CEO of The House Crowd, said: “Property investment has long been viewed as a sensible way for the shrewd small investor to save for the future, making life a bit more comfortable and paving the way for a financially secure retirement. However, these new regulations are putting increasing pressure on those who own perhaps two or three properties, making it very difficult for smaller landlords to remain in the buy-to-let sector. I'd encourage investors to look at newer options to help them remain in the game, like property crowdfunding - there is another way.”

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Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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