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Majority of landlords to stop investing in buy to let

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Written by: Christina Hoghton
11/03/2016
Six out of 10 landlords are going to stop adding to their buy-to-let portfolio, or even sell their properties.

More than half of all landlords are planning to stop investing in buy-to-let, according to research from Property Partner. And many of them are actually looking to downsize their current portfolio.

The property crowdfunding platform found that 60% of landlords are shelving plans to invest further in traditional buy-to-let as a result of the Chancellor’s planned premium on Stamp Duty for second properties.

In the dark

However, a shocking quarter of buy-to-let investors are not aware of the implications of the tax hike, as well as other measures that will impact landlords, including tougher mortgage rules from March and income tax relief changes from next year.

Of those surveyed by Property Partner, 27% had little or no awareness of the radical changes to their financial fortunes in the pipeline.

Of those who are aware of the changes, 38% said they still want to invest in residential property but are switching strategies and looking at alternative investments, such as crowdfunding.

Dan Gandesha, CEO of Property Partner, said: “On the evidence of our research, landlords are deeply divided over how to respond to the Government’s clampdown on buy-to-let.

“A significant minority are desperately buying up available stock to beat the April Stamp Duty deadline, causing a surge in prices. Do these people really understand how the government’s tax changes will impact their profits?”

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