78% of landlords refuse to be stopped by stamp duty changes

78% of landlords refuse to be stopped by stamp duty changes

According to new research from Nottingham Building Society, only one in seven landlords and potential landlords have scrapped plans to add to their portfolio or make their first BTL purchase despite new tax and stamp duty rules taking effect from this Friday.

Its study found 14% of existing landlords and potential landlords have decided against adding to their portfolio or starting investing in buy-to-let in response to increases in stamp duty on buy-to-let due on 1 April and tax changes due next year.

The national research shows interest in investing in property for retirement and demand for buy-to-let mortgages remains strong despite fears the new rules which remove tax breaks on income and increase the costs of buying would hit demand and undermine the attraction of property as part of retirement planning.

In fact the research shows around 78% of those questioned say they would still consider investing in property as part of their retirement planning following the new rules.

Mortgage brokers report strong interest from would-be landlords ahead of the stamp duty changes – The Nottingham’s research found 35% of brokers have seen an increase in inquiries from new buy-to-let customers over the past three months.


Ian Gibbons, Senior Mortgage Broking Manager at Nottingham Mortgage Services, said: “The buy-to-let market remains strong despite a period of uncertainty as lenders and customers assess their options ahead of stamp duty and tax changes.

People should only invest in buy-to-let if they can afford to and it makes financial sense for them. But that said it is clear that demand for property investment is not going away any time soon with the research showing people still very much value property as part of retirement planning.

The tax and stamp duty changes are complicating the calculations on buy-to-let but given the risks of stock market investment and the low interest rates there is a strong case.”

The Nottingham’s research shows just 10% of over-55s who were considering buying more properties, or buying their first buy-to-let property, have cancelled their plans as a result of the changes. That rises to 13% among those aged 45 to 54.

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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