Rising interest rates are just the latest in a litany of woes to upend the rental market – and few will be able to ride out the storm

Ben Wright and Ruth Bloomfield write in The Telegraph about "Why Britain’s buy-to-let dream is dying."

An average buy-to-let in England and Wales generates rental income of £12,000 and, after costs, a typical landlord would expect to clear a profit of £4,490, according to estate agency Hamptons. But, with mortgage costs going parabolic, this is set to fall to just £1,780 for basic-rate taxpayers and – wait for it – only £120 a year for higher-rate taxpayers.

The entirely understandable result has been a sharp increase in the number of buy-to-let landlords who are looking to sell their properties, according to a recent survey by the Royal Institute of Chartered Surveyors. There has also been a fall in the number of overseas investors to take their place.

Bank of England officials said last week that landlords were likely to keep raising rents in an attempt to cushion the blow of higher rates, but also added: “Falling profitability could, in principle, cause landlords to sell their property investments and exit the buy-to-let market. If this were to happen in large enough volumes, it could put downward pressure on house prices.” This, of course, could reduce the supply of properties available to tenants, further pushing up rents.

more

Leave a Reply

content search

browse by category

Recent Posts

SE Faversham: Fact Checker

The Swale Planning Portal contains extensive documentation detailing the Duchy proposal. The Community Land Trust is working its way through the details, and this will take time. We will publish more in due course when our review and analysis are completed. This Fact Checker was produced by Stephen Atkins, formerly a chartered surveyor (planning and […]

Read More
This is the Duchy's Vision

Rest assured that the FCLT will be "holding their feet to the fire" on the affordable homes. We are delighted to see the commitment to social rented homes.

Read More
Faversham needs both affordable starter homes and homes for social rent.

The Duchy of Cornwall has submitted its planning application for SE Faversham seeking consent for 2,500 new homes to be built at a rate of 125 a year across a 20-year period.  At least 875 of these will be affordable,  amongst which 400 will be for social rent and built to the same quality standard […]

Read More
Register to receive blog updates

Faversham  Community Land Trust is a Community Benefit Society Registration Number 8109
Registered Office: 12 Market Place, Faversham, Kent ME13 7AE | Email: info:favershamcommunitylandtrust.org
Faversham Community Land Trust © All Rights Reserved

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram