David Cox, Chief Executive, ARLA Propertymark comments on the increased taxes landlords have incurred over the last 12 months:
“It’s been a year since the Government inflated Stamp Duty costs for landlords to 3%, and it’s already made the Treasury £1.3 billion. That’s more than changes to Mortgage Interest Relief, which are now in force, are expected to make in its first three years. This will only further squeeze the sector and make buy-to-let a less attractive investment for landlords.
“Our monthly Private Rented Sector (PRS) report shows that since the Stamp Duty reforms came into effect last April, letting agents have seen the supply of rental stock decrease. In February, 44 per cent saw supply fall as a direct result, while only nine per cent saw it increase. The impending letting agent fee ban will also make buy-to-let investment less attractive, as costs are passed on through inflated agents’ fees which landlords pay. A quarter (27 per cent) are expected to stop increasing their portfolios as a result and a fifth (20 per cent) plan to sell some of their properties. We’re facing a severe housing shortage at the moment, and if the supply of rental stock falls any lower relative to demand for housing, we’ll find ourselves in the midst of a real crisis.”