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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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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ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

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keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

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NathanGreen
NathanGreen 07 Jun 2016

I agree with #6 - you should maintain your garden according to the target buyer. One thing is universal, though - cleanliness and order. Having the yard clutter-free and clean will help people who do enjoy...

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NathanGreen
NathanGreen 06 Jun 2016

I will always say that London is overrated. Sure it is the capital, but it's too stuffed in there. It's more of a business city to me.

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Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

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