Government intervention has failed to discourage landlords from investing in buy-to-let.
According to new data from HMRC, the buy-to-let sector is as buoyant as ever despite a wave of government measures designed to reduce the appeal of investing in buy-to-let properties.
Such measures include the 3% stamp duty surcharge, introduced in April of this year, the abolition of the 10% wear and tear allowance for landlords, and planned changes to tax relief on buy-to-let homes. The Bank of England’s Financial Policy Committee is also set to have greater influence over the buy-to-let market.
The first three months of 2017 saw a dramatic rise in buy-to-let lending figures prior to the introduction of the extra stamp duty surcharge. Unsurprisingly, these figures fell in the months following April, but since then the demand for buy-to-let investment properties appears to be increasing once again.
London remains a top destination for investment in residential property, and supply in the rental market is still strong. A recent report from Rightmove shows that London has witnessed a 15% year on year increase in the supply of rental homes, which is good news for tenants.
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