Buy-to-let landlords call for change in Autumn Statement

A new investigation has revealed that the overwhelming majority of buy-to-let landlords in the UK want to see more support from the Chancellor in Wednesday’s Autumn Statement.

Research conducted by Martin & Co found that 92% of investors feel the Government is now anti-landlord and is calling for changes.

Tax alterations

Certainly, the recent alterations have made life much more difficult for investors. In some cases, the 3% stamp duty surcharge, changes to mortgage interest tax relief and scrapping of wear and tear allowance have driven some landlords from the sector.

Last week’s announcement that the Bank of England is to get new powers to regulate lending to buy-to-let investors is another blow.

Further data from the research shows that 74% of investors want to see Stamp Duty scrapped in the Autumn Statement, while more than 50% want proposed changes to mortgage interest tax relief abolished.

Difficulties

Ian Wilson, chief executive of Martin & Co, observed: ‘The Government seems to be set on making life as difficult as possible for property investors, while ignoring the fact that landlords provide essential rental properties in locations where there are housing shortages and no realistic ability to buy.’[1]

‘People are relying on the private rented sector to supply property, so we need the Chancellor to back our landlords and encourage them to continue to invest and provide a vital pipeline of homes for people who simply cannot afford to buy,’ he continued.[1]

Pivotal

Eddie Goldsmith, chairman of The Conveyancing Association, believes that the Autumn Statement is a pivotal moment for the housing market in the UK. He feels that former Chancellor George Osborne’s policies has created a, ‘perfect storm.’ If this continues, Goldsmith feels that this could, ‘reduce transaction levels to rubble for many months to come.’[1]

‘It may be too much to hope that the 3% extra charge on additional property stamp duty will be abolished, but such a move-as well as a u-turn on next year’s mortgage interest tax relief changes-would be most welcome,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/investors-are-fed-up-with-governments-anti-landlord-policies-want-chang