New survey of buy-to-let investors shows they are not happy
Market research company BDRC Continental has found that buy-to-let confidence is at a record low since 2006 due to major tax changes including the extra 3% stamp duty tax on 2nd properties and the removal of tax relief interest on mortgages.
59% of landlords believe that the new tax changes will reduce profitability for their investment however 81% of investors with with 20+ properties believe this to be true. Over a third of the investors are now considering creating limited companies as a way to get round the new tax laws.
“There are few ‘happy ever after’ tales here. Many private landlords in Britain are really concerned about the impact of the 2015 Budget when tax relief on private rental properties was cut, and given the housing shortage, the potential knock-on effect on renters and the supply of rental homes is something that we all need to care about” said BDRC director Mark Long.
“With almost a decade of data on the sector, and 36,000 interviews, we can identify trends and it’s clear that the current sentiment among private landlords is very low” he stated.