Buy-to-let continues to boom, but change could be on the way

The buy-to-let sector has continued to expand, according to a recent survey.

Research carried out by the mortgage software firm IRESS suggests that there has been a 49 per cent increase in the market over the past 12 months.

The survey, now in its fifth year, analysed data from 18 lenders and confirmed that buy-to-let had enjoyed by far its most significant year-on-year growth.

Henry Woodcock, from IRESS, said: “This sector has increased by more than 213 per cent over the five years.

“But with the recent change of taxation around investment purchases for landlords, it seems unlikely that this stellar growth will continue.”

Earlier this month, a group of landlords lost a legal challenge over the changes to buy-to-let rules.

They had argued that the new system, set to be introduced next year, was tantamount to a tax on tenants, since it would significantly increase the financial burden on buy-to-let investors.

Under the rules, buy-to-let costs will no longer be a claimable business expense.

The landlords had gone to the High Court in the hope of securing a judicial review, but the Judge, Mr Justice Dingemans, refused permission for the challenge to proceed.

Carter Lemon Camerons has a wealth of expertise advising on residential property matters. For further advice please contact Prodromos Shakallis (ProdromsShakallis@cartercamerons.com) or visit our website.