A study undertaken by The Times has conveyed that the amount of British landlords selling their properties has decreased.
The analysis conveyed that the percentage of different properties sold by investors (compared with all homes) has decreased. It also conveyed that the figure is at its lowest since before 2015.
The report continues by suggesting that the reduced figures may be due to tax changes, made by George Osborne, may no longer be making investors put off by the industry.
Experts state that the figures indicate that Osborne’s reforms as chancellor were to slowly drive out amateur landlords and create stock for new firs-time buyers.
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When Osborne was appointed chancellor, he made crucial changes in taxation in order to reduce the number of landlords that were buying up too much of the market.
April 2016 saw Osbourne introduce a 3% stamp duty on properties within the buy-to-let bracket of the market. Overall, this made buying a property to rent out to customers more expensive. Additionally, he added an introduction to cutting the mortgage interest tax relief. This created servicing debt more so expensive for any investors. These two changes were then implemented in April 2017.
Hamptons International also analysed data around Britain and buy-to-let properties. They conveyed that the proportion of homes being purchased by landlords in the first eight months of 2019 has fallen to 14%. In comparison to the first eight months of 2018, 2017 and 2016 the figures were around 16%, so there is already a noticeable change.
The report by Hamptons International also stated the number of houses being bought by investors had risen to 12% overall. This is compared to the 11% in 2018 and 2017.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.