Will the government's tax changes discourage BTL investment?

Will the government's tax changes discourage BTL investment?

A new report reveals that 86% of landlords believe the Government's tax changes last year will discourage investment in the buy-to-let sector and ultimately, lead to a shortage of available of rental homes.

The research, conducted by Orchard & Shipman Group – a leading lettings and property management company – also reveals that almost 90% of landlords think the tax hikes will result in higher rents and a quarter of landlords will be selling some, or all of their properties. However, just 18% of landlords said they would pull out of the market all together. (*Source: Orchard & Shipman Group research amongst 500 landlords, January 2016).

The research also reveals that over 90% of landlords believe they should be free to deduct legitimate costs, just like any other business.  More than half of landlords surveyed said they would be raising rents in 2016 to cover the increased financing costs.

Shane Spiers, Chief Executive Officer of Orchard & Shipman Residential comments: “The   Government’s changes to the way buy-to-let investors are taxed will inevitably impact revenue. The shortage of housing, a growing rental market and rising property prices is driving increased demand for rental properties. With these market conditions at play, it’s no surprise that landlords will be putting up rents to supplement their income.  Unfortunately, it is tenants that will feel the brunt of the tax changes.” 


The Government’s ambition to make buy-to-let look less appealing, may yet be thwarted.  Many landlords and property investors are committed and passionate and will do whatever it takes to protect their interests.  Our research shows that the majority of landlords are looking at ways to recover the potential drop in revenue and we are advising landlords on the options available to them. I believe that the buy-to-let market will pull together to ensure it continues to provide much needed accommodation to meet growing tenant demand.”

Orchard & Shipman Group provides property services to landlords across the UK.  The Group has more than 25 years’ experience in delivering services to both the public and private sectors, from a network of offices across England, Scotland and Northern Ireland.

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Latest Comments

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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