The Chancellor George Osborn’s assault on the buy-to-let market could very well trigger a short term “spree” as landlords rush to purchase property before the stamp duty surcharge is introduced next April. Critics of this severe measure also say that tenants are likely to bear the weight of the latest taxation blow. With the reduced supply of properties to let and higher rents tenants seeking accommodation are in for an expensive time ahead. It is likely the cost of this extra stamp duty will have to be passed onto the tenant to make any new purchase financially viable for the landlord. This action will see rents and also property maintenance fees increase significantly to cover the increased expenditure. One does have to question whether this action by the Chancellor really does anybody any favours at all. It is very likely now we will see a rush from new and existing landlords to purchase property to save having to pay these increased charges. With a severe shortage of properties available these are likely to be very interesting days ahead. Product availability: There are so many different mortgage deals available it is imperative that you research the market thoroughly to ensure it meets your long term goals and needs. One thing to be very aware of is the deal that on paper looks to be the cheapest but when you look deeper it most certainly isn’t. With the prospect of increased interest rates in the future it may well be very prudent to consider a long term fixed rate deal. We would always recommend you seek professional advice when choosing your mortgage. Can we help? If you would like assistance choosing your buy-to-let mortgage please call one of our fully qualified advisers who will be happy to help.
