Property Reporter



Will 2016 see the end of BTL? Don't count on it......

Line Spacing+- AFont Size+- Print Forward to a friend Blog
Will 2016 see the end of BTL? Don't count on it......

Blog

Scott Hendry | Together

The property investment landscape is subject to constant change and, as a result of new legislation, some of the biggest changes ever to hit buy-to-let and auction property investors are just around the corner.

In April, the Chancellor’s stamp duty on second properties is due to kick in. But are property investors prepared? What does the news spell for buy-to-let and auction buyers? And will we see the number of bidders dropping in 2016? These are the questions that have been preoccupying industry commentators.

A recent report by the Bank of England  confirmed that buy-to-let lending is approaching its pre-crisis peak, whilst recently-released figures state that house prices have increased a whopping 10% in the year to January .

With demand outstripping supply, investors are keen to seize the opportunities, although many commentators are expecting the 3 per cent increase in stamp duty payable on a second property after April 2016 to be a deterrent.

However, following the summer and autumn statements last year, here at Together we saw a 28% increase in buy-to-let lending cases in Q4 of 2015, compared with the previous year. Auction houses have also reported significant growth in 2015 , with the anticipation that this will continue in the months ahead.

This suggests that George Osborne’s changes have, in fact, spurred property investors to enter the market before the April stamp duty hike and looks likely to continue, at least for the first quarter.


While it is possible that April might be followed by a cooling off period and a potential dip in auction bidding, we don’t envisage the measure deterring investors for long. Given the pace at which prices are currently rising, any upfront cost could be mitigated very quickly – particularly in London and the South East.

Obviously property investors and landlords will need to adjust their models to take the new stamp duty into account, but it is unlikely to stop seasoned auction house bidders from buying altogether.   

Beyond this, investors will start exploring other options. For example, we could see an increase in bidding for commercial or semi-commercial properties, as the stamp duty increase is specific only to purchases of residential property. This tactic could save savvy investors thousands upfront.

One thing is sure – Together is ready to help landlords and investors to secure properties that match their investment aspirations at auction, and 2016 looks set to be an exciting year.

Got something to say? Leave a comment below:

You must be logged in to leave a comment

More articles from Scott Hendry

Research shows lack of awareness when it comes to alternative funding

Reflecting on a record-breaking month across the industry

Savvy investors aim to beat the buy-to-let changes

What's all the noise about Right to Buy?

Top property investor hotspots released

Will 2016 see the end of BTL? Don't count on it......



Latest from Financial Reporter

April remortgaging soars to post-recession high

The journey into retirement - as complicated as a London Bus Map?

CML: 7-day switching success dependent on start point

shutterstock_7358431.jpg

London growth offsets seasonal dip in Q1


Latest from Commercial Reporter

ASTL: Upward trend for bridging continues

Fleet makes criteria changes for limited company transfers

Are SME overdrafts dying out?

Rise of 'flatpack' lenders prompts warning to SMEs


Latest Comments

HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

Tenants disappearing into the night is common from shared houses ( licensed and un-licensed HMO's) often when they owe considerable rent- they remove all their possessions, leave key in room and tell other...

view article
CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

view article
Johna
Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

view article
Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

view article
richardrawlings
richardrawlings 18 May 2016

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

view article
Agent_PeeBee
Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

view article
richardrawlings
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

view article
Simon Oliver
Simon Oliver 16 May 2016

The best solution is to buy a property that has built-in income generating potential: a nice house with a couple of gites in the grounds is a good start. In France, the rune of thumb is that one 2-bedroomed...

view article
WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

view article
warren
warren 03 May 2016

It's enough to make me weep into my Pimm's :(

view article
james anderson
james anderson 03 May 2016

The sad demise of the croquet lawn...

view article
CommercialTrust
CommercialTrust 11 Apr 2016

".. the stricter lending criteria will reduce the amount of buy-to-let lending by 10% to 20% in three years’ time." The PRA was actually referring to cumulative approvals here. What they believe is that...

view article

Latest Tweets