Buy to Let is dead! Long live Buy to Let!
Whether by accident, as an alternative investment to the stock markets, a desire to add to pension income or to make a living, all categories of residential landlords have been affected by the impact of recent tax changes, lending restrictions and tighter lending regulations. Many investors have therefore been forced to rethink their existing and future plans.
In 2015, in addition to the 3% SDLT surcharge, the Chancellor announced that the system by which landlords claim tax relief for mortgage interest payments will change and that the new rules would be implemented over a 4 year period starting from April 2017:
For some landlords the economic effect of these changes could potentially drive them into negative cashflow.