Surge in BTL advice seen ahead of stamp duty changes

Surge in BTL advice seen ahead of stamp duty changes

The latest research released from Nottingham Building Society has found that buy-to-let landlords have triggered a surge in advice enquiries as they race to beat new stamp duty and tax rules.

The sweeping changes to buy-to-let are boosting business for mortgage brokers as landlords seek advice on improving existing mortgage deals and expanding portfolios.

More than a third (35%) of brokers questioned by The Nottingham said they have seen an increase in enquiries from existing landlords with 42% reporting enquiries about re-mortgaging while 31% say landlords are asking about expanding their portfolios.

Landlords face two major changes in legislation with a 3% surcharge on stamp duty for buy-to-let purchases coming into effect from April encouraging some to expand their portfolios while changes to tax due in 2017 are encouraging others to sell.

Despite concerns that existing landlords will sell their portfolios and flood the market, The Nottingham’s research shows that only one in five (19%) of existing landlords plan to sell some or all of their portfolio in response to the tax changes which prevent owners from deducting mortgage interest costs from rental income.


Ian Gibbons, Senior Mortgage Broking Manager at Nottingham Mortgage Services, said: “The tax changes and stamp duty increase have complicated the calculations for would-be buy-to-let investors but there remains strong interest in investing in the sector. It is striking that one in five landlords are planning to sell some or all of their properties but people need to think carefully before rushing into decisions driven by tax changes.

Brokers we speak to are seeing a wide range of enquiries from customers that are not focused simply on selling but also on re-mortgaging and ensuring they have the most competitive deal.”

The study shows landlords in London are the most likely to sell some of their portfolios while those in the North East are the least likely to sell.

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Latest Comments

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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