Paragon Mortgages says its most recent survey of buy to let investors makes it clear that the vast majority want the government to scrap tax changes affecting the sector.
It says nine out of 10 landlords now say they understand the implications of the tax changes to mortgage interest tax relief, first announced in the 2015 Summer Budget by then Chancellor George Osborne, and jow being phased in over three years.
Scrapping this was the highest-ranking answer given by landlords in Paragon’s latest survey.
The second ranked answer was for no more change, in favour of a period of stability following a turbulent two years which also saw the introduction of the three per cent additional stamp duty surcharge for second homes from April 2016.
The third most popular action landlords would most prefer the new government to take is an exemption from capital gains tax and stamp duty for landlords moving properties into a limited company structure.
“Having taken active steps in preparing for a difficult period of transition as the tax relief changes continue to be phased in, landlords are now facing up to the challenge ahead” says John Heron, managing director of Paragon Mortgages.
“Higher tax charges for landlords have combined with a general increase in uncertainty to drive confidence levels down. However, whilst there are signs of lower demand it would appear that property yields are being maintained and that void periods are close to historic lows. This would suggest that despite the negativity around the market that the private rental sector continues to perform well” he adds.