11:59 AM, 7th February 2018, About 4 years ago 13
Intermediary Mortgage Lenders Association (IMLA) figures show that Buy to Let investment has fallen by 80% since the 2015 Summer Budget Section 24 mortgage interest relief restrictions were announced.
IMLA figures indicate net investment in new properties by Buy to Let landlords fell from £25 billion in 2015 to only £5 billion last year.
IMLA are blaming the cumulative layered effect of government policy against private landlords including Stamp Duty surcharges for second homes and increased regulatory responsibilities. They argue that Buy to Let has had a positive effect on the Private Rental Sector with a total investment by landlords of £289 billion into the market since the year 2000.
Kate Davies, IMLA executive director said: “The raft of regulatory and tax changes that have hit the Buy to Let market in the last year have far reaching effects that are still yet to be fully realised.
“We know that the majority of people regard owner occupation as the tenure of choice, but for many this is not an immediate option. We also know that those who would in the past have rented from their local authority or Housing Association now need to rent privately. We urge the government to reassess the impact of the recent far reaching regulatory changes to Buy to Let investment and allow a period of policy consolidation.
“Various interventions by government have apparently been aimed at encouraging more first time buyers and making investment in Buy to Let less attractive to existing and potential landlords, but the PRS plays a vital role in our housing supply and it’s essential that a sensible balance is struck, if tenants are not to be disadvantaged by shrinking stock and higher rents.”
“Our nation’s private rental sector investors provide a vital service that’s vital to millions of UK tenants. We need to support and protect a sector that does so much for so many.”
After adjusting for inflation, IMLA analysis shows a 4.4% fall in rental costs in real terms between 2005 and 2017.
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents the views and interests of UK mortgage lenders involved in the generation of mortgage business via professional financial intermediaries. Its members include the intermediary-based arms of banks and building societies and a range of specialist lenders who are entirely intermediary-based in terms of their sales distribution channel.
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