Buy to let market continues to remain resilient despite legislation changes
The buy to let market has shown incredible resilience and has been adaptable in the face of a number of changes to tax legislation and regulation changes.
Buy to let landlords have not been put off from investing in the sector despite numerous changes which have been labelled as ‘anti-landlord’ policies, including the introduction of the 3% stamp duty surcharge, the scrapping of the 10% ‘wear and tear’ tax allowance and the phasing out of mortgage tax relief.
7% of specialist buy to let lender Accord Mortgage’s business came from first time landlords in 2017.
Applications peaked in November equalling 11% of the total number of mortgage applications it received that month.
57% of Accord Mortgages’ buy to let applications received in 2017 were from those affected by new regulation.
The highest number of applications received came from portfolio landlords (32%) with four or more properties, despite Accord only have introduced new criteria for these landlords in September.
185 of applications received since April 2017 were from landlords considered as consumers which are single property landlords where they or their relatives have previously lived.
Chris Maggs, commercial manager at Accord Buy To Let, commented: “We have seen a significant demand for buy-to-let mortgages from both experienced and first time landlords this year.
“2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.”
“This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes. However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”
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