A shocking new survey has revealed the full extent of the government’s attack on the buy-to-let sector across England and Wales.
According to estate agent haart, buy-to-let sales have fallen 64% in the year to November and 8.2% in the last month.
haart also said that the number of landlords registering to buy properties was down 59.2% annually.
Paul Smith, CEO of haart, said: “The scale of decline in buy to let in just twelve months is deeply worrying – landlords have clearly pulled out of the market and are unlikely to return any time soon. However this is entirely the result of government policy, with Theresa May now picking up George Osborne’s baton and proceeding to bash landlords with renewed vigour.
In April, a 3% stamp duty increase was introduced as part of the government’s attempt to curb the buy-to-let market and free up property for first-time buyers.
The basic rate of tax relief landlords can claim on properties is also set to fall to 20% from April 2017 and tougher underwriting standards and affordability assessments are being introduced by the Prudential Regulation Authority in January.
Smith said the government’s attack on investors was a “war on landlords” which cast them as the “pantomime villains” of the property market.
“The government is making a conscious decision to put landlords on the block for a property market that isn’t working for first time buyers or Generation Rent. However rather than chasing investors out of the market altogether, a better solution would be to channel their cash into housebuilding and increasing the supply of rental properties.
“Tenants are stuck in an intensely competitive market where rents are often more expensive than mortgages, because there are simply not enough properties available for lettings, and many landlords now have no choice but to pass the extra costs on to tenants.”
Never did like Osborn and his parting shot has been to ruin the ‘buy to let’ market. The number of properties now available to rent will decrease and this will place an ever greater burden on the local authority to provide accommodation. Does this person think that people will work for nothing? I hope that the government will realise that he made a huge mistake and this has now backfired on people looking for a rental property.
Change this system again before its too late. There must be better ways to control the property market.