New regulatory changes introduced by the government, including changes to mortgage tax relief, have left landlords and buy to let investors undeterred from the sector, according to new research.
The measures, introduced by former chancellor George Osborne were described as having the aim to create a ‘level playing field’ for homeowners and investors. However, the government has been criticised for introducing changes which seem to unfairly target private landlords.
Coming first was the stamp duty surcharge in April last year, and following this, the removal of the 10 per cent wear and tear tax relief for landlords who let furnished homes. Despite hype surrounding its removal in the recent 2017 Budget, mortgage tax relief is set to be phased out over the next three years, starting from next month. Furthermore, the Bank of England’s Financial Policy Committee now possesses greater regulatory power, making it harder for landlords and investors to obtain a mortgage.
However, research by Simply Business has found that 83 per cent of landlords are not deterred by the changes, and are optimistic with regards to the future of the sector. A further 22 per cent have cited the concept that the buy to let sector is on the decline as ‘nonsense’ and expect that they will stay involved.
48 per cent appear somewhat fazed by the changes. They are of the opinion that is harder to remain in the sector, although do not anticipate that they will desert it. A mere 12 per cent have reacted negatively to the increased regulation, and think that it is only possible to be a buy to let landlord now if you are well established in the sector.
It seems that landlords on the whole still have confidence in the private rental sector, and the vast majority will carry on their buy to let rental business as usual, despite the challenges thrown at them.