Potential Landlords still keen to invest in Buy-To-Let Market

Given changes to stamp duty, tighter regulations and the introduction of the Tenant’s Fee Ban last year, it’s easy to assume that there’s little appetite in the market or encouragement for landlords to invest in Buy-to-Let properties. However, a recent large-scale survey has suggested that such a sentiment is far from reality.

Perrys Chartered Accounts asked 1,000 people and discovered that close to 75% of those questioned backed the idea of investing in Buy-to-Let properties, with that number rising to 83% when looking at millennials (those born between 1981 and 1996).

Why not invest?

So, what’s stopping them? The survey noted that increased tax and stamp duty rates are understandably off-putting, with Brexit unsurprisingly playing its part in making buyers think twice when deciding to invest.

What can be done to encourage investment?

Investors will likely all note that a decrease in stamp duty would be preferable, and a similar sentiment is shared in Perrys’ survey alongside a wider selection of tailored mortgage products. Interestingly, over one fifth of those questioned were keen to explore alternatives to long-term property investment with longer tenancies, such as short-term lets.

Preparing for the future

When it came to detailing reasons for wishing to invest in such properties, a willingness to fund a pension alongside replacing their current stream of income and building an inheritance were all noted as key factors for potential investors.

"It’s interesting that the younger generation still sees [buy-to-let] as a way to plan financially for the future,” noted Donna McCreadie, a Buy-to-Let tax specialist at Perrys. “However, there are many things to consider before jumping in, including stamp duty charges, how income tax might be affected and what the return on the investment is likely to be.

"Investing in a property is a long-term plan rather than a quick fix to financial freedom so it’s important to gather as much information as possible and speak to a professional tax specialist and mortgage advisor before making a commitment," she says.