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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Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

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Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

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Homebuyerconveyancing
Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

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oliviaG
oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

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oliviaG
oliviaG 29 Aug 2016

So true about cats!

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Jason Roberts
Jason Roberts 25 Aug 2016

Any predictions what average rent will be at the same time next year, anymore drops coming?

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dylanvan
dylanvan 19 Aug 2016

very good, thanks for sharing

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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