Property owners have had a lot to grumble about in recent years. Although some of the worst predictions haven’t manifested, there has been uncertainty. The most recent budget led to more calls for change from landlords, both in the student let and general population. Landlords groups made several requests that the government look at the current state of the industry and reverse some unpopular decisions of the recent past. Nevertheless, the market is expected to remain steady.
New Measures “Won’t Deter”
Despite unhappiness at the measures in the budget that came in for criticism from all parties, the message is clear. Landlords say they will not be deterred from the industry and have vowed to carry on in. Furthermore, several other proposed changes were put forward. The government is not at liberty to consider them and if the requested alterations won’t go through, various landlord groups will accept it.
Landlords requested in the budget, or for any future budget, the following measures:
- That the government conduct a review into the effects of mortgage interest relief on buy-to-let mortgages
- Abolition of the 3% Stamp Duty (SDLT) surcharge
These were the most popular wish list requirements ahead of the budget late last month. The survey went on to highlight several other areas of concern.
Surveying Landlords
In the survey released ahead of the budget on 29th October, 40% of landlords said their top priority was an immediate review of changes to Mortgage Interest Relief. The next biggest issue at 26% felt the abolition of the surcharge was the most important change to be made. However, concerns about a mass exodus is still no closer to being realised. 29.5% (that’s almost a third) said they were taking a long-term view of the market. A slightly higher proportion (32%) were being cautious about the future. 71% said they would maintain their existing portfolio while 15% said they would expand. Just 7% of landlords in the survey said they were already selling or looking to sell some of their properties.
This is unsurprising despite initial fears. For most landlords, it’s not a side business on top of a regular full-time job. Many are now professionals with large portfolios whose sole job is managing a property business. Many feel that the government fails to understand the modern property ownership landscape.
Post Budget Analysis
After the budget, many expressed some surprise that few measures were announced pertaining to property owners. The most important was the rise in the personal threshold which applies to everyone. It rose to £12,500 – a measure which will come into force in April 2019. On a related note, an investment fund may prove important for those considering their long-term futures too.