Buy to let still popular among Moneywise users despite tax hikes

House with to let sign outside

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). 


Published: 19 May 2017
Last updated: 19 May 2017

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