Reverse 3% surcharge, investors say

The majority of buy-to-let investors are calling for a reversal on the extra 3% stamp duty surcharge, a measure introduced in April 2016.

According to a recent survey from MT Finance, 75% of investors feel a reversal of the 3% rise would help the current market and inspire movement. 

A further 25% want to see a reversal in the changes to mortgage interest tax relief, a measure introduced in April of this year which is being phased in. Of those who participated in the survey, well over half say they have been affected by the changes. 

In an attempt to sidestep the changes to mortgage relief, some landlords have moved into limited company structures, as this survey reveals. 

Meanwhile, all of those surveyed said they were not getting enough support from the government.  

The many changes to tax and regulation have left some landlords wondering whether to sell off part or all of their portfolios. Some landlords have already started to pass on rising costs to tenants by raising rents. ?

Over the last year, the average rent in England and Wales has increased by 3.1%, according to Your Move’s Buy to Let index. This is largely due to all the changes affecting landlords. 

But landlords still have options, and for portfolio landlords in particular, there is still the promise of demand for rental properties and rising property prices.  

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