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.

Join our mailing list:

Leave a comment



Latest Comments

luxus
luxus 27 Sep 2016

It can be stressful. More clarity is needed on the process, from a customer perspective and consideration should be given to using the Scandinavian model where the sales process is much quicker.

view article
Melissa_Green
Melissa_Green 26 Sep 2016

Green belts are normally designated around capitals and other major cities and conurbations and their aim is to prevent urban sprawl by keeping land permanently open. The essential characteristics of green...

view article
Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

view article
Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

view article
Homebuyerconveyancing
Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

view article
oliviaG
oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

view article
oliviaG
oliviaG 29 Aug 2016

So true about cats!

view article
Jason Roberts
Jason Roberts 25 Aug 2016

Any predictions what average rent will be at the same time next year, anymore drops coming?

view article
dylanvan
dylanvan 19 Aug 2016

very good, thanks for sharing

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

Related stories

More articles from Landlords