Buy to Let Curbs

The house market does not seem to have been harmed by the recent trouble of the stock markets.

July’s gross mortgage lending was 12% higher than the same time last year. This was due more to remortgages than property being bought by first time buyers.

Landlords seem to be doing very well, their property values rose 1% in one month and their rents and returns are also rising.

When their costs do rise these are passed onto their tenants making it more difficult for them to save for a mortgage.

Some would like to see landlords unable to buy one and two bed properties giving the first time buyers a chance to own a property.

The other side of the coin is that landlords are not doing as well as it is thought. Rent yields are not growing very quickly and if property is sold landlords are subject to Capital Gains Tax on any profit made.

Landlords do not consider it necessary to stop them buying one and 2 bed properties as they maintain not all young people want to buy a property choosing to rent so that because of work commitments move around the country or choose to pay off debts before committing to a mortgage, giving the need for smaller rental properties.