Unfazed landlords:

Landlords are unfazed by Brexit and tax changes, according to a survey just released. It found that four in five landlords have no intention of changing their plans to invest in buy-to-let properties, despite June’s announcement that the UK would leave the EU. Only 7.5% said the Brexit vote meant they would postpone expanding their portfolio, while 11% said they were likely to invest even more, the same proportion that said they planned to sell a property.

Rents on the up

Many tenants renting privately are likely to be hit with rent hikes following recent changes to the tax regime for landlords, according to new research. A survey of almost 3,000 private sector landlords carried out found that 56% of buy-to-let landlords plan to pass on increased costs to their tenants following the surcharge on stamp duty for second property owners and cap on tax relief for buy-to-let mortgages. The study also revealed that around two-thirds of buy-to-let investors are confident they will be able to achieve an acceptable profit on their existing holdings in the long term.

Landlords are still confident:

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.

Tax challenge fails

The landlord group, which was led by QC Cherie Blair, argued that the changes were both “unfair and unlawful”, and that the case should go to a full judicial review hearing. However, Mr Justice Dingemans ruled the challenge “arguable” and dismissed it in the Administrative Court. The changes proposed in Section 24 of the Finance (No.2) Act 2015 will stop buy-to-let finance costs – largely mortgage interest – being a claimable business expense. Most landlords with mortgages will now have to pay tax on their turnover rather than profit. The amount of mortgage tax relief they can claim will also be cut from 45% to 20% from 2017 to 2020.

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