Despite landlords being hit by extra costs, the buy-to-let market is experiencing a resurgence, says an October 2016 article on TheWeek.co.uk.
Landlords have been faced with increased costs imposed by the government. The stamp duty on buy-to-let properties rose in April 2016, and the tax relief that landlords can claim will soon be reduced.
Rental yields have dropped in London by 0.7%, but outside the capital rents have risen by 0.5%.
Some analysts thought the extra costs may have put many landlords off expanding their property holdings, or new investors entering the market. Figures published by the property service Rightmove say that this has not happened though, and that there is still plenty of interest in the buy-to-let housing market.
Enquiries on the Rightmove website from prospective landlords rose 30% between the months of June to September 2016. The number of buy-to-let properties being offered for sale has risen 15% in London and 5% in the rest of Britain.
Sam Mitchell; of Rightmove said:
“Investor activity has bounced back following the stamp duty changes, though some agents report that many investors are looking to knock sellers down on their asking prices to make up for the additional stamp duty they now need to pay.”
In an October 2016 artcile, the Financial Times said that buy-to-let investors are “staging a fight back against the government’s efforts to rein it in.”
Many landlords are taking advantage of low interest rates on commercial mortgages to finance buy-to-let property purchases.