Almost a third of private landlords remain positive about the property market, despite Brexit and recent tax changes, according to a new survey from Direct Line for Business.
The insurance products provider for landlords found that, despite a slightly gloomy outlook for the short-term, 31% of private landlords are optimistic that house prices will improve, while 28% think the demand for rental properties will remain strong.
The private rented sector has been hit by a series of measures, all designed to discourage would-be investors from buying up properties they then intend to let out.
The measures include an additional 3% stamp duty surcharge on the purchase of second homes, which was introduced in April 2016, while in April of this year, changes to mortgage interest tax relief were brought in. The latter is being phased in between this April and April 2020.
Business Manager at Direct Line for Business, Christina Dimitrov, said: "It’s great to see landlord’s being resilient towards the ever-changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand."
Brexit appears to be less a cause for concern among those surveyed than the tax and regulation changes. This includes the Right to Rent legislation, which requires landlords to carry out checks on all adult tenants (aged 18 or over) to make sure they can legally rent a property in the UK.
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