The beginning of the end of BTL?

The beginning of the end of BTL?

With just three weeks to go until Chancellor George Osborne's 3% stamp duty hike on buy-to-lets and second homes kicks in, new research by property crowdfunding platform Property Partner makes for sober reading.

Nearly six-in-ten (59%) landlords surveyed say they are shelving plans to make further investments in traditional buy-to-lets, or are even planning to sell some of their existing properties.

Surprisingly, given the extensive media coverage, many landlords still seem unaware of the full implications of the combined government measures about to be implemented. Tougher mortgage lending rules kick in on March 21, quickly followed by April’s stamp duty hike, with mortgage interest tax relief being phased out from 2017.

Yet 27% of landlords surveyed by Property Partner, had little or no awareness of the radical changes to their financial fortunes in the pipeline.

Landlords are split down the middle. While 41% of those questioned say they plan to continue buying properties for rent, almost the same proportion (38%) say they are switching strategies - still investing in residential property, but through crowdfunding platforms like Property Partner instead.


Property Partner has seen a surge in investment on their platform as investors look for alternative ways to invest in property. It’s largest crowdfunding raise to date, a £2.4m modern development in Hastings, East Sussex, completed with a record 1191 people investing in shares in the property. Meanwhile, Property Partner’s unique resale market, it’s “property stock exchange”, saw a 77% increase in shares traded between January and February.

Dan Gandesha, CEO of Property Partner, commented: “On the evidence of our research, landlords are deeply divided over how to respond to the government’s clampdown on buy-to-let.

A significant minority are desperately buying up available stock to beat the April stamp duty deadline, causing a surge in prices. Do these people really understand how the government’s tax changes will impact their profits? Luckily the majority of landlords are taking a much more cautious view, with many choosing Property Partner as a better way to access residential property investment, without the hassle, expense, or tax implications.”

Join our mailing list:

Leave a comment



Latest Comments

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

view article
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,...

view article
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...

view article
jasonevans
jasonevans 19 Aug 2016

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

view article
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...

view article
madisonwelch80
madisonwelch80 02 Aug 2016

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

view article
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.

view article
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.

view article
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

view article
AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

view article
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...

view article
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...

view article

Related stories

More articles from Hero

Specialist Lending Roadshow 2016

20th-23rd September

4 days
6 specialists
4 locations
Free to attend

Click here to register now