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

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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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

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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...

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Mark N.
Mark N. 30 Aug 2017

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

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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...

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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.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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