Some 40% of landlords are considering moving their portfolios into corporate structures according to new research just undertaken. The survey of 1500 landlord’s shows a further 5% have already established limited companies following the Chancellors decision to reduce tax relief from April 2017.
Buy-to-let landlords face tougher borrowing rules under the plans by the Bank of England’s regulation arm, the Prudential Regulation Authority (PRA) These changes under consultation include more stringent affordability and repayment assessments amid warnings that increasing levels of lending pose a severe risk to the UK property market.
The joint crackdown on the buy-to-let by Chancellor George Osbourne and the Bank of England is deterring only 14% of landlords from buying more properties. Investing in property for retirement is still very popular with four out of five people recent research has revealed.
There is little doubt that the new buy-to-let stamp duty reforms will push rents upwards and trigger a decline in the supply of available properties. According to the Association of Residential Letting Agents (ARLA), over 50% of letting agents reported an increase in buyers looking to invest in the buy-to-let market before the increased stamp duty deadline.
