A concerning new survey has indicated that the majority of landlords believe that the Government’s perceived assault on the buy-to-let sector will lead to serious market damage.
Research conducted by property management group Orchard and Shipman suggests 90% feel that the tax hikes will bring about higher rents. This was based on a survey of 500 landlords.
Leaving
Further results indicate that one quarter of landlords will sell their properties as a direct result of the changes, with 18% saying that would have to leave the sector altogether.
In addition, the research shows that over 90% of landlords think that they should be able to deduct legitimate costs from rents. This was found to be one of the main issues with the Government’s proposals to limit mortgage interest tax relief for the more higher-taxed landlords.
Committed
Over half of the landlords surveyed said that they would increase rents over the course of 2016, to cover the increased financing costs.
However, Orchard and Shipman thinks the Government’s ambition to thwart the buy-to-let sector may yet come up short.
18% of landlords will leave sector as result of tax changes
‘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,’ noted Shane Spiers, chief executive of the firm.[1]
‘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,’ he added.[1]