What does 2016 look like for Landlords?
We’re predicting quite a bit of change for buy-to-let landlords in the coming months. This is a result of the governments views on the buy-to-let market, crowding home-owners and reducing opportunities for first-time buyers to get on the property ladder. Despite this, the market demand is increasing as people look for a low-maintenance lifestyle.
We’ve taken a look at some of the key market changes that could affect the rental market in 2016.
- The ‘Right to Rent’ legislation came into effect on 1st February meaning that any landlord’s housing tenants that do not supply valid documents to satisfy the requirements of the Immigration Act 2014 will face up to £3,000 worth of fines per person.
- From April 2016 the government will be reclassifying stamp duty land tax (SDLT) for anyone purchasing a second property. If you purchase a property after this date in England, Wales and Northern Ireland, you will be paying a stamp duty land tax that’s 3% higher than the current rate.
- The government has outlined a potential decrease in some landlord tax privileges. This is something that will be outlined after the summer budget and is in the pipeline for 2017.
- Seven years ago interest rates hit a record low. In the next 18 months, economists are predicting a rise in mortgage rates.
If you’d like to learn more about the buy-to-let market, get in touch with our specialist team here.