There has been an avalanche of information and news reports recently all about the less than ideal situation that a large proportion of buy to let landlords find themselves in at the moment.
There recent changes made within the buy to let sector have had a devastating effect on the profits than can be achieved with this type of property investment right now.
We covered in detail many times recently in our DevDosh Ltd blog all the changes that have come into effect in the buy to let market so I won’t spend too much time on them now.
But, changes in tax, stamp duty and now stricter lending criteria set out by the Prudential Regulation Authority mean that many landlords are ready to throw the towel in and move on.
One of the UK’s largest law firms issued a report advising of the huge rise in the number of buy to let landlords looking to reduce or sell off their property portfolios.
Irwin Mitchell states in the report that the increase is in direct response to the massive amount of changes placed upon landlords by the Government, which have made buy-to-let investments more work for less profit, which is not the best investment option.
The law firm has also issued a warning to buy to let landlords regarding the sizable capital gains tax bill they could face.
The report also mentions the growing public anti-sentiment being increasingly expressed in the media against the backdrop of the housing crisis.
Jeremy Raj, partner at Irwin Mitchell, said: “It’s understandable that landlords who have been hit with some difficult changes to swallow, are now thinking of exiting the buy-to-let market in order to invest elsewhere.
“We’ve certainly seen an increase in inquiries from landlords worried about the future market.
“However, the CGT liability that will crystallize on each property sale must be factored in when weighing up whether it is best for landlords to divest of their property portfolio.”
He added: “If the Government really wants to help young people on to the property ladder, it needs to combine the recent disincentives in the buy-to-let sphere with fulfilling its promises to get more housing built.”
If you are one of the buy to let landlords affected by the recent changes and have had enough of being the governments’ whipping boy, and you too are looking for an alternative buy to let investment then look no further.
For a UK property based investment product that gives you:
- A fixed income of a whopping 10% annually
- Asset backed security of 120% to the value of the investment
- Minimum term of only 12 months
- Minimum investment level as low as 5000 GBP
- Tax efficient