Recent regulatory changes cover right to rent and smoke and carbon monoxide alarms. These are important however they don’t impact hugely on landlords. Fast forward to April 2016 and massive changes will come into force.
In this week’s budget, Chancellor George Osborne confirmed the biggest impact upon buy to let world – the 3% hike in stamp duty for buy to let investments and second homes. Plus - mortgage interest tax relief will be phased out by 2017.
Property Platform, a crowdfunding property platform has researched the landlord market – with interesting results reported by Property Reporter:
- Surprisingly, 27% of the landlords surveyed didn’t realise that theses big changes were about to happen.
- 41% of landlords said that the changes would not change their plans. They will continue to buy to buy to let properties.
- 38% are changing their approach. They will continue to invest to buy to let properties however they will do this through crowdfunding platforms such as Property Partner.
Property Partner CEO, Dan Gandesha, said: “On the evidence of our research, landlords are deeply divided over how to respond to the government’s clampdown on buy-to-let. A significant minority are desperately buying up available stock to beat the April stamp duty deadline, causing a surge in prices. Do these people really understand how the government’s tax changes will impact their profits? Luckily the majority of landlords are taking a much more cautious view.”
Jason Dyer of JTM Homes explains: “The north London property market still offers great potential for buy to let property investment. We are seeing continued demand for buy to let properties. Yes, the changes to stamp duty and how mortgage interest is treated will affect returns, however property remains an extremely attractive proposition for investors – especially whilst interest rates are forecast to stay incredibly low for a while.”
To find out more about investing in buy to let property or to view north London properties to let, talk to the team at JTM Homes. We have a specialist lettings team and are here to help you.