An interesting article appeared last week stating that ‘buy to let’ has never been so low, with the main inference being the recent tax changes to rental income as the cause. Yes the government’s changes to tax relief will certainly have affected the lending criteria, with it being much tougher to secure mortgages based on rental income and deposit ratio’s. However LTV’s can be adjusted so that lending criteria then does not affect new Landlords securing new properties. We believe the sales market in general is more the issue with the slowing of new properties coming on for sale. That is further evident in our area as sales Agents go through the inevitable cycle of discounting their sales fees to try and secure new stock instead of justifying their service.
This in turn makes it competitive for ‘would be’ and professional Landlords to make the figures stack up as owner occupiers buy with their heart not their head. Budgets to a larger extent do not play a part in the decision process.
We have recently been working hard to secure properties for clients and have been giving general advice to quite a few new Landlords. So from our perspective we are getting new stock and the market is as buoyant as ever. Not so much ‘never been so low’ as business as usual.