A concerning new investigation by property crowdfunding platform Property Partner suggests that nearly a third of landlords are unaware of the upcoming tax changes.
27% of residential landlords surveyed by the website said that they had limited or no awareness of the tax changes that are just around the corner.
This worrying statistic comes just two weeks before the increases in stamp duty on buy-to-let property purchases come into force. What’s more, today’s Budget is likely to include yet more changes to the sector.
Division
Further data from Property Partners’ study shows that 59% of current landlords are putting plans for further investment on hold. The remaining 41% said that they are firmly committed to investing in buy-to-let property.
38% said that their investment methods would change, with them still investing in residential property, but through crowdfunding platforms.
Dan Gandesha, chief executive of Property Partner, said, ‘on the evidence of our research, landlords are deeply divided over how to respond to the Government’s clampdown on buy-to-let.’[1]
‘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?’ he questioned.[2]
27% of landlords unaware of tax changes
Cautious
Gandesha went on to say that, ‘luckily the majority of landlords are taking a much more cautious view, with many choosing Property Partner as a better way to access residential property investment, without the hassle, expense or tax implications.’[2]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/3/third-of-landlords-still-unaware-of-industry-tax-changes
[2] http://www.gainsboroughstandard.co.uk/news/property-news/more-than-half-of-landlords-plan-to-stop-investing-in-traditional-buy-to-let-1-7790803