Buy-to-let still a healthy investment, says PwC report
New research from PricewaterhouseCoopers says that the lettings market will not be adversely affected by the end to some tax relief that landlords can currently claim.
The Big 4 firm found the Government’s reduction of mortgage interest tax relief for landlords is unlikely to stop the continued popularity of buy-to-let in the UK economy.
Emma Wells, lettings director at Leaders Estate agency, commented: “Tenant demand remains incredibly high and is expected to continue to rise over the years to come."
“This means investors can buy a property safe in the knowledge there is likely to be a ready supply of tenants looking to rent," she added.
The current controversy over the amount of new homes being built in the UK is only one factor that keeps the issue in the news headlines.
The PwC study highlights the issue by suggesting that a quarter of UK homes will be lived in by tenants rather than owner-occupiers within the next five years.
Mortgage lenders have a strong stake in the fact that the buy-to-let market was extremely important to them, the report said.
Tax relief changes
However, due to the new tax relief changes, some lenders are offering limited company buy-to-let finance products, as they provide landlords with a more tax-efficient option to invest in property.
However, Emma Wells issued a word of warning to prospective landlords: “To make the most of these favourable market conditions you should consult a local independent expert for impartial advice on which location and property type will best meet your investment goals.”