A survey claims that despite the apparent rush to purchase buy to let properties before the stamp duty surcharge deadline of April 1, about a quarter of would-be purchasers have been deterred by this and the future cuts in mortgage interest tax relief.
The survey of 1,053 adults claims that some nine per cent have given up on aspirations to own a buy to let property because of the government’s proposals while 30 per cent remain interested. Around one in seven of existing landlords say they will now sell one or more of their properties because of the new rules.
Those planning to invest in BTL were going to use savings and investments worth an average of £43,592 to buy a property. Instead, the survey claims 39 per cent will use the money to save in a cash account, 30 per cent will invest in an ISA, 20 per cent will put it into their pension and 13 per cent will put it in other stock market investments.
The survey was conducted for the website rplan.