10 Mar Landlords ‘fairly well informed’ of BTL changes, YouGov finds
Buy-to-let landlords are fairly well informed on tax and regulatory changes in the sector, according to a YouGov report.
The Council of Mortgage Lenders reports that the survey of 925 mortgaged BTL landlords, conducted in December and January last, found that over two-thirds confirmed that they were aware of the change
High-income landlords were more likely to be anticipating it, with over 80 per cent of those earning more than £100,000 per year reporting awareness of the measure.
Roughly 30 per cent of those polled said the changes would not affect them and a CML spokesperson believes that this could actually be the case.
“For example, if you operate your lettings through a corporate structure, fall below the threshold for paying income tax, transfer the property to a spouse who does not pay tax, or do not take advantage of mortgage interest relief in the first place, the changes would not affect you,” the spokesperson explains.
About 70 per cent of buy-to-let landlords were aware of additional stamp duty for second and subsequent homes, which was introduced last year.
The CML says that the survey suggests that higher interest rates are not an issue that concerns landlords.
Nearly 80 per cent of respondents said they could manage an interest rate increase of 1.5 percentage points over the next three years.
Almost three-quarters (74 per cent) reported that it was easy or very easy to afford their mortgage repayments, indicating that most have already built in a buffer to militate against adverse conditions, says the CML.
However, it says this buffer may later be absorbed by the increased tax bill that many will face.
Mortgage Stratergy