Brexit, extra stamp duty, the prospect of less tax relief and tougher mortgage lending criteria have all failed to deter landlords from investing in buy-to-let property. Industry figures released today show that landlords flooded back to the market in September, looking for and snapping up properties despite the tide of Government measures brought in to subdue buy-to-let. Figures just released reveal a 35% cent bounce in buy-to-let enquiries since May, while separate figures from surveyors show a particularly strong recovery in September, when the number of buy-to-let valuations rose 27.5% on the previous month. This all follows a bumpy year for buy-to-let: in April the Government introduced a 3% surcharge on stamp duty payable against all buy-to-let property purchases and second homes, causing a surge of activity in the first three months of the year. Then lenders began to crack down, making it tougher to get buy-to-let mortgages ahead of a reduction in tax relief on mortgage interest due to be introduced in January 2017. These measures came on top of the removal of landlords' “wear and tear” allowance which allowed them to claim expenses back for upgrading their properties - and the forthcoming reduction of mortgage interest tax relief for buy-to-let. So all in all it’s been a tough year in the buy-to-let market but new and existing landlords refuse to be down hearted. The consensus of opinion shows landlords have a great deal of faith in the property market as house values continue to rise.
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