Property Reporter



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

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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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Paul
Paul 25 May 2016

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Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

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Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

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richardrawlings
richardrawlings 18 May 2016

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Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

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richardrawlings 18 May 2016

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