Three in 10 (32%) buy to let landlords have kept all their rental properties and plan to do so for now, according to the results of a new Moneywise poll.
We asked users whether they’d changed their mind on buy to let as a result of recent unfavourable tax changes, which include:
- Capital gains tax being slashed in April 2016 for everyone except second homeowners.
- Landlords and second homeowners having to pay a 3% surcharge on existing stamp duty land tax rates on properties bought from 1 April 2016.
- Tax relief on mortgage payments being cut from the tax rate landlords currently pay to the basic rate of 20%. This is being phased in from April 2017. Landlords who pay basic-rate tax won’t see a change, but those on higher incomes will find themselves losing out.
But perhaps surprisingly, of the buy to let landlords who responded to our poll, 32% said they’ve kept all their properties and plan to do so for now.
Our findings back up a recent poll by Fidelity International, which found that when it asked whether people would prefer to invest in property or a portfolio of shares, Brits picked property.
Just 3% of buy to let landlords who voted in our poll said they’ve sold or are in the process of selling all their properties, a further 3% said they’ve sold or are in the process of selling some of their properties, and an additional 3% said they’ve kept all their properties but do plan to sell some or all of them soon.
It seems the tax changes also haven’t acted as a deterrent to becoming a buy to let landlord – 16% of people polled said they’d still consider becoming a buy to let landlord despite the recent tax changes. This compares to 11% who said the tax changes had put them off.
An additional one in three (32%) did, however, say that they’re not a buy to let landlord at present and they have no interest in becoming one regardless of any tax changes.
See the full poll results below (click on image to expand).