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Investor interest in buy-to-let has sunk by 80%

There has been a significant decline in buy-to-let acquisitions since 2015 owed primarily to tax and regulatory changes, new figures show.

A new IMLA report reveals that net investment in buy-to-let property has fallen by 80% from £25bn in 2015 to £5bn in 2017 due to excessive regulatory intervention on the sector. The government’s decision to introduce a number of measures to curb the growth of buy-to-let landlords has had an adverse impact on the market, the report states. The introduction of higher purchasing costs, the scrapping of the wear and tear allowance and the phasing out of landlords’ mortgage interest tax relief, have also deterred many experienced BTL investors from adding to their portfolios.

The report notes the positive impact that buy-to-let has had on the PRS. It estimates that between 2000 and 2017, UK buy-to-let landlords invested £289bn into the sector, meeting rising tenant demand by bringing 1.8m properties into the rental market.

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