Government tax policies shrink buy-to-let property purchases by 250,000 over five years

The government’s assault on private landlords is achieving its much-predicted end-game as new research reveals that 250,000 ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Government tax policies shrink buy-to-let property purchases by 250,000 over five years | LandlordZONE.

Government tax policies shrink buy-to-let property purchases by 250,000 over five years

The government’s assault on private landlords is achieving its much-predicted end-game as new research reveals that 250,000 fewer buy-to-let properties have been purchased by landlords over the past five years.

Estate agency Hamptons says the reduction in buy-to-let property purchases is a direct consequence of the government’s 3% stamp duty surcharge on second home purchases and the Section 24 tapering of mortgage interest relief.

It is five years since the additional stamp duty charge was introduced for landlords and four years since the mortgage interest changes began to kick in.

These changes have also generated other dramatic changes – in 2015 landlords bought 16% of properties on the market each year, but today that figure is 11%.

London hit hardest

Hamptons also says that London and the SE have seen the greatest drop in landlord purchasing activity, from 20% of the market in 2015 to 11% now.

As a result, landlords have purchased 61,300 homes in London since 2016.  However, this number would have risen to 103,300 or 69% more homes had the tax changes not been introduced.

This drop-off in new investment means 81% of all rental homes in the capital today were bought before April 2016, compared to just 65% in the North West where landlord purchases have remained more resilient.

Aneisha Beveridge, Head of Research at Hamptons, says: “The tax changes introduced from 2016 onwards have undoubtedly taken the heat out of the buy-to-let market.  Landlord purchases have dropped and consequently the rental sector is 7% smaller than it was at its peak in 2017.

The NRLA recently called for the 3% additional stamp duty levy .

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Government tax policies shrink buy-to-let property purchases by 250,000 over five years | LandlordZONE.

Source : Landlord Zone More   

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Minister reveals bid to re-launch commonhold with help from new ‘industry council’

The government has launched an initiative to re-ignite interest in Commonhold, the tenure introduced in 2002 by ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Minister reveals bid to re-launch commonhold with help from new ‘industry council’ | LandlordZONE.

Minister reveals bid to re-launch commonhold with help from new ‘industry council’

The government has launched an initiative to re-ignite interest in Commonhold, the tenure introduced in 2002 by the then Labour government but which has failed to catch on.

Housing secretary Robert Jenrick (pictured) has announced a Commonhold Council which will be charged with reinvigorating interest in the tenure, which he says is a key plank in the government’s plans to give property owners ‘more control over their home and building’.

The announcement is one of the key recommendations into reforming property market made by The Law Commission last year.

Commonhold enables property owners, usually within apartment blocks, to take collective control of a building and take greater control of who manages it and the costs involved.

But the tenure has not taken off in the way many had hoped, largely because developers and freeholders find leasehold more lucrative via ground rents and other charges.

Also, commonhold doesn’t suit the many mixed-use developments that are being built these days and it hasn’t been supported by mortgage lenders.

To remedy this the Commonhold Council is to have representatives from many organisations within the property market.

This includes RICS, the British Property Federation, Building Societies Association, Federation of Private Residents’ Associations, , Home Builders Federation, Law Society, campaigning Leasehold Knowledge Partnership and 12 others.

Rather oddly, though, no representatives from the property management sector are on the council.

“We are taking forward the biggest reforms to English property law for 40 years – and the widespread introduction of commonhold builds on our work to provide more security for millions of existing leaseholders across England, putting an end to rip-off charges and creating a fairer system,” says Jenrick.

Simon Law (pictured), Chairperson of the Society of Licenced Conveyancers, says: “We have long campaigned for reform of leasehold legislation and a move to widespread adoption of Commonhold in its place.
“It is greatly encouraging that the Government is now taking this seriously.”




©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Minister reveals bid to re-launch commonhold with help from new ‘industry council’ | LandlordZONE.

Source : Landlord Zone More   

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