There was just £5bn of net investment in buy-to-let property in 2017 – down 80% from £25bn in 2015.
That was according to a report from the Intermediary Mortgage Lenders Association, ‘Buy-to-let: under pressure’.
Unsurprisingly IMLA blamed reduction on the plethora of changes that have hit the market in the last few years, including the 3% stamp duty surcharge, the reduction in mortgage interest tax relief and the introduction of stress tests.
Kate Davies, executive director at IMLA, said: “The raft of regulatory and tax changes that have hit the buy-to-let market in the last year have far-reaching effects that are still yet to be fully realised.
“Various interventions by government have apparently been aimed at encouraging more first-time buyers and making investment in buy-to-let less attractive to existing and potential landlords.
“But the PRS plays a vital role in our housing supply and it’s essential that a sensible balance is struck, if tenants are not to be disadvantaged by shrinking stock and higher rents.
“We urge the government to reassess the impact of the recent far-reaching regulatory changes to buy-to-let investment and allow a period of policy consolidation.
“Our nation’s PRS investors provide a vital service that’s vital to millions of UK tenants. We need to support and protect a sector that does so much for so many.”