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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Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

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Tony Gimple
Tony Gimple 27 Nov 2016

It's not just the lack of estate agency advice that's costing landlords money; most are getting seriously bad advice from their accountants resulting in tax bills far higher than they need to be. Likewise,...

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Sally Walmsley
Sally Walmsley 18 Nov 2016

The RLA stands by its sell-off statistics. While we welcome the feedback from Mr Jagota and are delighted to hear how well things are going for landlords in the north east, we would like to make it clear...

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Sheryl87
Sheryl87 18 Nov 2016

The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming...

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Sheryl87
Sheryl87 18 Nov 2016

Renting out your house can be risky business. It's good to think about residential landlords insurance. Standard cover includes buildings cover and cover for loss of rent following damage to a property...

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AmberMorris
AmberMorris 09 Nov 2016

Fear of ghosts, really?? Ok, I get the fear of bats in the attic and mice and rats running under your nose - those are easy to deal with pest issues which are really unpleasant and can turn you off. But...

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AmberMorris
AmberMorris 08 Nov 2016

In my experience, It has always been a matter of discussion between the landlord and the tenant. There are cases when it's clear who's responsible for the pest control costs. I see a lot of people in forums...

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warren
warren 08 Nov 2016

There you go buddy :)

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Agent_PeeBee
Agent_PeeBee 07 Nov 2016

Any reason why my comment to this 'article' has not been published?

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Sean Lees
Sean Lees 04 Nov 2016

I don't think anyone can say dogs or cats are better or worse; depends on the animal, its age, how long it's left inside, etc. How bad the mess is depends somewhat on whether you are renting furniture...

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daniel black
daniel black 25 Oct 2016

I've been keeping a close eye on what the effect of Brexit has been on the rental market and it's a very mixed bag. Whilst the majority of the news focuses on London's market. I think this time next year...

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Northerner
Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

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