Buy To Let property purchases plummet as tax threats mount

Buy To Let property purchases plummet as tax threats mount


Todays other news


The number of buy to let property purchases in the UK fell 14% from 224,700 in 2022/23 to 193,700 in the year ended June 30 2024.

The figure comes from the chartered accountants and business advice company Lubbock Fine, which has analysed government data.

This has meant that purchases of BTL properties have fallen to their lowest levels since the government introduced the higher rate of stamp duty on additional dwellings in 2016. At its peak, 287,200 purchases were made in the year to June 2021

This fall in BTL purchases has partly been driven by the sharp rise in interest rates on BTL mortgages but also by a series of measures introduced over the last few years that have made BTL property less attractive from a tax point of view.

Those changes include preventing landlords from deducting mortgage interest costs from their income; reducing the expenses landlords can claim against tax bills for ‘wear and tear’ on properties; cutting Private Residence Relief, which increased the amount of Capital Gains Tax landlords must pay when selling a property that used to be their main home; and of course introducing an additional 3% rate of Stamp Duty on sales of buy to let properties.

Says Andy Noton, partner at Lubbock Fine: “We’ve seen a marked decrease in purchase activity for rental properties.

“Concerns that the new Government will increase CGT at the next Budget or add to the red tape for landlords is encouraging more landlords to exit the market and fewer to buy.”

“However, a continued fall in mortgage rates could change all that. Rents have continued to climb so a reduction in finance costs could suddenly improve the economics for landlords.” 

 

Share this article ...

Join the conversation: Login and have your say

Subscribe to comments
Notify of
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
A senior Propertymark figure says letting agents up and down...
The government’s aim to ban so-called bidding wars - a...
Zoopla reports today that there’s a continued mis-match between supply...
The biggest rental sector headline from Labour’s manifesto may well...
Although much focus is on the Bank of England and...
A new Renters' Rights Bill is to be introduced into...
Recommended for you
Latest Features
An agent claims he and his peers in other agencies...
Sponsored Content
B-hive Block Management Partners Celebrates Major Milestone With Over 100...
We’re absolutely delighted to announce that, after 10 years, we’re...
You don’t have to simply accept things as they are...
2
0
Would love your thoughts, please comment.x
()
x

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here