Buy-to-let confidence stronger in Scotland

Ryan Bembridge

July 19, 2016

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Scottish brokers are more confident than the English in the future of the buy-to-let market, Legal & General research has revealed.

North of the border nearly two thirds (63%) expected activity in 2016 to maintain 2015 levels.

In England Nottingham was the most optimistic region, where 57% felt buy-to-let would expand or remain the same, followed by 49% in London.

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Contrastingly 71% of intermediaries in Manchester expected the sector to contract.

The government enforced a 3% buy-to-let stamp duty surcharge this year and from 2017 to 2020 will reduce the amount of mortgage tax relief higher rate taxpayers can claim from 45% to 20%.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Despite a whirlwind of changes to the buy-to-let market, including the government’s stamp duty hike and the reductions in tax relief on the horizon, it’s clear that a large number of brokers remain confident that buy-to-let will remain strong in 2016.

“Though there are concerns that government interference could mean a reduction in buy-to-let activity this year, our research shows that many brokers in both England and Scotland believe the market to be well positioned to absorb the impacts of these measures.

“Even now, amid the uncertainty brought about following June’s referendum result, borrowers will be looking to remortgage their buy-to-let properties as a potential reduction in rates looms.

“Brokers need to grasp this opportunity by contacting their books now to ensure these individuals get the crucial advice they need when it comes to securing a better rate on their mortgage.”

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