Government urged to give the Buy to Let market some “breathing room”

Tuesday, July 30th, 2019

According to a report released recently by the Intermediary Mortgage Lenders Association (IMLA), entitled “Buy to Let at a crossroads”, the buy to let industry has had to absorb some significant regulatory and taxation changes in recent years. 

Use a Specialist Buy to Let Mortgage Broker

Given these complex changes, landlords may choose to utilise the services of a specialist buy to let mortgage broker, such as Caboodle Finance, that can help them access products and facilities not readily available on the high street, often with tax guidance from their accountant (an approach that we thoroughly endorse).

The IMLA report also commented that the adverse effects of these rule changes could force some landlords to exit the market, potentially leading to a reduction in the supply of houses in the privately rented sector. Putting this in context, in 2018 the Ministry of Housing produced the “English Private Landlord Survey” which noted that professional landlords accounted for almost half of the properties rented through the private sector.

A Sharp Decline in Buy to Let Mortgage Debt

The report further noted that whilst the UK privately rented sector had grown from 9% in 1999 to around 20% in 2016, and notwithstanding an overall increase in the number of landlords with smaller portfolios, overall buy to let mortgage debt had declined sharply.

Kate Davies, executive director of IMLA commented, “… We are strong advocates of a fair market with a quality supply of homes… and urge a more moderate approach to ensure our private rental sector remains strong for the millions of renters who rely on it.”

Although there have been many factors in play (including, according to the IMLA report, a highly constricted mortgage market) one consequence of the recent regulatory and taxation changes is that for some, investment property may now be less financially attractive than was the case previously.

But, of course, there are likely to be some great opportunities too!

Accessing the Right Buy to Let Mortgage for you

Here at Caboodle Finance of Sutton Coldfield, Birmingham we work very hard to help our clients access the right buy to let mortgage for their individual circumstances. To hear more about how we do that, call us on 0121 308 9114 or alternatively, just click HERE to contact us via our website and one of our team will be in touch.