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

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article

Related stories

More articles from Hero