Home

Half of current landlords would not go near buy-to-let now

Half of current landlords would not enter the buy-to-let market for the first time now.

Rather than invest, they would stay out of the market, citing government intervention, regulatory changes, economic uncertainty and a lack of returns.

Out of 738 landlords asked for their opinions, 40% said they would still invest in buy-to-let, saying it provides better returns than other types of investment and they believe property can still deliver capital growth.

Only one in four landlords said they intended to increase rents over the course of the next 12 months, while a majority of landlords believe they are renting out at least one of their properties below market rental value.

Half (51%) called for the Government to U-turn on policies designed to squeeze private landlords – specifically, the 3% Stamp Duty surcharge on the purchase of buy-to-let properties, and the phasing out of mortgage interest tax relief.

The landlords were taking part in a poll commissioned by mortgage lender Foundation Home Loans.

UK house sales stronger than normal in August - Rightmove

LONDON (Reuters) - August, normally a quiet month for Britain’s property market, has seen a surge in sales, possibly due to buyers seeking to conclude transactions before the country leaves the European Union on Oct. 31, property website Rightmove said on Monday.

Rightmove said sales in the August period, which cover the four weeks to Aug. 10, were 6.1% higher than a year earlier and their strongest for the month since 2015, bucking a generally sluggish trend since June 2016’s referendum on leaving the European Union.

“While the end of October Brexit outcome remains uncertain, more buyers are now going for the certainty of doing a deal, with some having perhaps hesitated earlier in the year,” Rightmove director Miles Shipside said.

New Prime Minister Boris Johnson has promised to take Britain out of the EU by Oct. 31, even if that means leaving without a transition deal - something most economists think will cause major disruption to businesses and overseas trade.

But British consumers have largely shrugged off Brexit worries so far, bolstered by a strong labour market and the fastest increases in wages in 11 years, in contrast to businesses, which have held back from making major investments.

House price inflation has slowed since June 2016, according to official figures. But this has largely been driven by price falls in London and surrounding areas, which have been most affected by higher property taxes on expensive housing and fears of post-Brexit job losses in the financial services sector.