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.”

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Latest Comments

CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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