Potential tax and regulatory reforms are a cause for concern among buy-to-let (BTL) landlords as they seek help from lenders and brokers in adapting to market shifts, new research from Butterfield Mortgages has found.
The prime London mortgage provider commissioned an independent survey of 501 UK landlords. It revealed that 77% of UK landlords are concerned that the potential tax increases from the new government, such as Capital Gains Tax, could adversely affect their investments.
Further, 70% of UK landlords said that they are apprehensive about the government’s plans to abolish Section 21 ‘no-fault’ evictions and its possible impact on their ability to manage their tenants effectively. Meanwhile, a fraction more (71%) are worried about the potential introduction of higher energy efficiency standards for rental properties by 2030.
The research found that landlords are seeking more assistance from lenders and brokers to refer them to tax and regulatory professionals in order to understand new reforms and policies ahead of the Autumn Budget (30 October).
When given a list of qualities that they look for in a lender, 49% of UK landlords ticked their ‘expertise around tax and regulation concerning my purchases’, making it the most selected option. The same was true of brokers – 38% of landlords said they wanted this expertise from a broker, placing it ahead of the range of financial products they have access to.
Alpa Bhakta, CEO of Butterfield Mortgages Limited, said: “With the Autumn Budget just around the corner, it is clear that landlords are keenly waiting to see what the Chancellor announces. There has been a significant amount of tax and regulatory change in the BTL market over the past decade, and there’s plenty of speculation that more is coming – landlords are understandably wary of the implications.
“The Budget will provide much-needed clarity, but our research underlines that lenders and brokers, and third-party experts, have a vital role to play in the weeks and months to come. Landlords evidently value tax and regulatory expertise particularly when facing potential widespread policy changes. Great financial products are not enough – the support, access to relevant experts and customer services must be exceptional, too.”
Read the orginal article: https://ffnews.com/newsarticle/funding/btl-landlords-look-for-help-with-tax-and-regulatory-reforms-as-budget-looms/
