You are here: Home - News -

Over half of brokers expect buy-to-let sector to fall in 2019 – poll result

by:
  • 10/01/2019
  • 0
More than half of brokers expect to see landlord confidence in the purchase market to slowdown throughout 2019, whilst less than one third predict more landlords will buy properties.

 

Mortgage Solutions polled brokers on whether they expect more buy-to-let landlords to buy properties in 2019, with 66.1% replying negatively, whilst 31.3% predicted a rise.

Just two per cent of brokers cannot give an answer.

Dominik Lipnicki, director of Your Mortgage Decisions, said the stamp duty increase as well as taxation complications have had a negative impact on the BTL sector over the past few years.

He added: “We cannot predict anything until certainty over Brexit is reached. However, this is not the only key factor, as government is not encouraging people to buy properties.

“Over the past few years, while taxation went up, there was a slowdown in the housing value, with plenty of areas where property prices fell, including London and Surrey. I reckon that this will carry on this year.”

Shaun Church, director of Private Finance, said that he expects the first six months of the year to be negative in terms of purchases and good business opportunities will be around first-time buyers, remortgages and product transfers.

He added: “In the wake of Brexit, correction in prices is an opportunity, but there are other factors which negatively impact the BTL sector, such as the three per cent stamp duty and changes to taxation. In order to see an improvement in this sector, I’d like to see the removal of the additional 3% stamp duty.”

Director of lender relationships and new homes at Alexander Hall, Greg Cunnington, agreed with the majority of brokers, but expects increased activity from experienced landlords.

He added: “Regulation changes had a very negative impact on the BTL market, and at present landlords are looking for houses in multiple occupation (HMO) and short-letting property investments.”

There are 0 Comment(s)

You may also be interested in

Read previous post:
Matthew Tooth
Small changes are secret to successful mortgage market innovation – LendInvest

For those hoping to see the property industry embrace innovation, 2018 turned out to be something of a mixed year.

Close