Stamp Duty hike for landlords will see rents rise
Landlords reckon that government interference in the buy-to-let market will result in increased rents, according to a new survey by Belvoir.
Although 68% of landlords surveyed had not raised their rent in the last 12 months, 86% believe that increased purchasing costs for investment properties will inevitably lead to increased rents.
The survey also confirmed that government policies aimed at cooling the buy-to-let market are making landlords cautious about their future investment plans for 2016, increasing pressure on the Private Rental Sector (PRS).
A massive 93% of landlords with one to 10 properties said that changes to Stamp Duty and taxation were likely to influence their investment plans for the next 12 months. Almost half (44%) admitted they would be adopting a cautious approach to further investment.
Belvoir’s managing director, Dorian Gonsalves, said: “An overwhelming majority of landlords believe that increased purchasing costs for investment properties, due to a rise in Stamp Duty and lack of BTL mortgage tax relief, will ultimately lead to increased rents.
“Most landlords named George Osborne’s anti-landlord policies as the single largest challenge that landlords will face in 2016.”