The Intermediary Lenders Association (IMLA) has strongly advised the Government not to apply any more tax and regulatory interference on buy to let landlords.
The IMLA has reported that any more pressure on the buy to let market could have adverse effects, limiting tenant choice and the risk of a rise in rents.
Landlords already had the pressure of higher stamp duty, the wear and tear allowance being removed, paying extra stamp duty charges and the rolling back for mortgage interest relief to 20% tax credits.
The Government’s 2018 English Private Landlord Survey shows
Limiting mortgage products and the government applying tax pressures and more regulation has made property less profitable for the smaller buy to let investor. We know by action this is what it was meant to do by forcing landlords to sell to release more property to the market but the adverse effects are increased rents. In addition, the government will collect less tax in the form rental income profits falling as well as capital gain taxes (CGT) when landlords sell. Despite an initial boost to CGT as landlords sell,. Ff more sell now but long term, a lower tax break with lower numbers of landlords. That said, given how weak the £ is, this will only encourage more foreign ownership of property, so will property prices fall that much anyway?