Tax increases fail to shatter landlord confidence

Despite the increased tax burden on landlords, over half still remain confident in the buy-to-let market and in what the future holds for their investments.

According to new research from Property Partner, 57% of landlords feel no differently about the buy-to-let market since a wave of measures were introduced with an aim to slow investor activity and free up housing for first-time buyers. 

In April 2016, a 3% stamp duty increase was levied on those buying second properties, while in April of this year, a measure was introduced which limits relief for mortgage interest costs to the basic Income Tax rate. The latter tax only affects individual landlords who draw an income from a residential property, and the changes will be phased in over a number of years. 

The findings demonstrate that landlords remain confident in the benefits of long-term property investment, and believe they will continue to see a good return on their investments in the future. 

With the housing shortage, which is especially acute in London, there is a likelihood that prices will continue to rise, albeit at a slower pace than in recent years. ?

As an alternative to other forms of investment, residential property in particular has long been seen as relatively risk-free. 

The study carried out by Property Partner suggests many landlords feel this continues to be the case, despite a higher tax burden. 

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Landlord Today