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.

Join our mailing list:

Leave a comment



Latest Comments

RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article
Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

view article
brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article
Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

view article

Related stories

More articles from Landlords

Property Finance Roadshow 2017

4th - 12th October

4 days
6 specialists
4 locations
Free to attend

Click here to register now