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Majority of BTL investors say 'it's business as usual' despite tax changes

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Majority of BTL investors say 'it's business as usual' despite tax changes

According to a new survey of over 170 property investors, 56% of Shawbrook clients are planning to purchase a buy-to-let property within the next 12 months.

The survey captured the mood in the market amongst Shawbrook clients and outlined their top challenges and expectations for 2016.

With changes in tax approaching, Shawbrook can reveal that 40% plan to set up a limited company for their properties to counter the impact of tax changes, whilst 33% plan to raise rents.

While the outlook for investors remains positive, new changes to tax relief and stamp duty have caused some investors to check their ambitions. Of the 44% who are not planning on purchasing a new BTL property this year, just over a third (37%) said it was due to the 20% cap on tax relief for BTL properties making the proposition unattractive, whilst almost a fifth (16%) said the 3% extra stamp duty levy on second homes and BTLs was putting them off.

The latest figures also revealed that almost half (49%) of clients said they considered regulation to be the biggest challenge facing property investors over the next 6 months, a significant increase on last year’s Barometer results, which found that regulation was something only 23% of investors considered to be the biggest challenge they faced.


Despite these challenges, 61% have a positive outlook for the upcoming 12 months, predicting either a large or small increase in property value. In total 43% of landlords saw an increase in tenant demand in 2015 and 61% saw an increase in their rental income. A further 44% are confident that their business will grow in 2016.

Karen Bennett, Sales & Marketing Director Commercial Mortgages comments: “As a lender it is always great to see such positivity in the market, and as with our Broker Barometer conducted in late 2015, it seems that there is a lot of optimism amongst property professionals also. Obviously the new changes will have an effect and may instil more caution across the market; however, Shawbrook is well-placed to adapt to change, and we are expecting the market to remain buoyant.”

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HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

Tenants disappearing into the night is common from shared houses ( licensed and un-licensed HMO's) often when they owe considerable rent- they remove all their possessions, leave key in room and tell other...

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CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

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Johna
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

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

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Agent_PeeBee
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
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

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Simon Oliver
Simon Oliver 16 May 2016

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WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

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It's enough to make me weep into my Pimm's :(

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james anderson 03 May 2016

The sad demise of the croquet lawn...

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CommercialTrust 11 Apr 2016

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