Buy-to-let purchases at lowest level since 2016
![Buy-to-let purchases at lowest level since 2016 Buy-to-let purchases at lowest level since 2016](https://i2.wp.com/www.propertywire.com/wp-content/uploads/2024/08/buy-to-lett.jpg?w=780&resize=780,470&ssl=1)
Fewer rental properties are being purchased thanks to higher mortgage rates combined with hostile policies towards landlords, research from chartered accountants and business advisers Lubbock Fine has revealed.
The number of rental properties purchased has fallen by 14% year-on-year to just 193,700 in the year ending June 2024.
At its peak, 287,200 purchases were made in the year to June 2021.
Andy Noton, partner at Lubbock Fine, said: “We’ve seen a marked decrease in purchase activity for rental properties.
“Concerns that the new government will increase CGT at the next Budget or add to the red tape for landlords is encouraging more landlords to exit the market and fewer to buy.
“However, a continued fall in mortgage rates could change all that. Rents have continued to climb so a reduction in finance costs could suddenly improve the economics for landlords.”
In terms of hostile policies towards landlords, following changes from the Cameron/Osborne government, landlords are prevented from deducting mortgage interest costs from their income, increasing their tax bills.
There’s also the 3% stamp duty surcharge, the reduction of expenses they can claim against tax bills for ‘wear and tear’ of properties, as well as cutting Private Residence Relief, which means landlords pay higher Capital Gains Tax when selling a property that used to be their main home.