Confidence amongst landlords is stabilising following government intervention in the buy-to-let market. Of the landlords asked 47% rated their prospects in the next three months as being either good or very good. This is 2% down on the final quarter of 2015, indicating that falling levels of confidence may have stabilised. More landlords are also looking to buy rather than sell, reversing the situation seen at the end of last year. Nearly a fifth (19%) of landlords indicated that they intend to purchase a property in the coming year, up from 16% in the final quarter of 2015. Increased stamp duty, as well as reduced levels of income tax relief for landlords due to come into force next April, have undoubtedly impacted landlord sentiment. Confidence by some measures is down by around a third when compared to the same period last year. That said, this data does suggest that confidence is stabilising. The buy-to-let market has surged in recent years, with investors attracted by cheap mortgages, low interest rates and rising rents. In April a 3% stamp duty increase was introduced as part of the government’s attempt to curb the buy-to-let market and free up property for first-time buyers. In the run up to the stamp duty hike there was a boom in borrowing as buyers brought forward transactions to beat the deadline. Landlords in recent months have been rushing to incorporate their properties to save on taxation and this has contributed to the upturn in confidence. Mortgage advice: If you require assistance with your new or re-mortgage please do get in contact with one of our fully qualified advisers.
