16th
Dec 2016
In a recent piece in the Guardian, the very outspoken and controversial landlord Fergus Wilson states that the government's anti landlord stance and the stricter lending criteria, could possibly wipe out small buy-to-let landlords.
Fergus and Judith Wilson built up a portfolio of more than 900 homes that they rented out and are at present in the throes of selling the properties which are valued at £250 million. The 'homes' are mostly based in the Kent area and they are selling up now because in the future, investors will be put off by the tougher lending criteria that is being imposed and the higher rental income that has to be achieved because of the stamp duty increase, mortgage tax relief reduction and so on.
Wilson says that next year will be even tougher to make ends meet in the buy-to-let sector and the new tougher stance will see many smaller landlords being forced out of the market and considerably less numbers of new investors entering into the sector.
Since the stamp duty increase from April, there has been a large drop in requests for buy-to-let valuations which has fallen by nearly a fifth (18.5%) over the last twelve months.
The UK's largest private landlord last year pushed his rents up by 33% after hearing the ex-chancellor 's new tax relief changes, removal of the 10% wear and tear allowance and believes that “the days of the small buy-to-let landlord are numbered”.
Wilson told the Guardian: “It will be impossible to achieve in the future what Judith and I achieved. The constraints put on [buy-to-let] by the government will ensure that.
“Very many landlords are exiting because of restrictive tax conditions due to hit them.”
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