CPS Homes

Landlords faced a tough 2017, but BTL investment remains strong

Buy to let made out of scrabbleThe UK government introduced some tough changes to the buy-to-let market last year, meaning 2017 proved to be a challenging year for many buy-to-let landlords.

There was the introduction of the 3% stamp duty surcharge for anyone purchasing additional properties, the clampdown on mortgage interest relief and tougher mortgage lending conditions all merging to create what would appear to be a less attractive proposition for many landlords when it comes to purchasing a buy-to-let property.

Difficult time for BTL investors looking to buy

Leading property market experts say that little comfort has been offered to buy-to-let investors from the new government policy. With the phasing out of key tax advantages, along with the 3% stamp duty increase, it has meant times are certainly a lot tougher for those looking to start or add to a property portfolio.

The political and economic uncertainty that currently surrounds the UK, as well as more stringent lending conditions, are forcing many landlords across the country to review their portfolios. Last month, new lending stress tests were introduced, and these are sure to have some sort of impact on all private landlords, regardless of their portfolio size, with both professional and accidental landlords being affected.

BTL properties are still considered a sound investment

Despite this, property market experts claim there is still appetite in the buy-to-let market, as many people do still consider buy-to-let properties to be a very attractive income investment - certainly for the long-term.

It is being advised that landlords look to grow or amend their property portfolios in response to tax adjustments, so that they can focus on potential areas of growth and hone in on any opportunities for value enhancement.

Busy and populated city suburbs with a high demand for housing, and where prices are generally considered more affordable can still offer plenty of value to any investors.

Buy-to-let properties in regional cities are increasingly regarded as the smartest purchases in 2018 for capital growth and the strongest returns.

If you’re a landlord in Cardiff looking to buy a property to add to your BTL portfolio, or hoping to source the perfect tenants, get in touch with us today! Likewise, if you’re looking to trim your portfolio and put a property on the market, then the experienced team at CPS Homes letting and estate agents can ensure you get the best possible value. You can contact us on 02920 668585, e-mail us at enquiries@cpshomes.co.uk or call into one of our Cardiff branches based in Cathays, Cardiff Bay or Roath.

07 February 2018

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