The death of Buy To Let


Events and trends in the property and financial world tend to happen in cycles.

I recall clearly as the credit crunch came to a welcome close, buy to let transactions were a welcome kick start for many lenders, brokers and of course their new owners! The lending and purchases were straightforward deals for adviser and customer alike.


Then Government intervention came in the form of a heavy hand.

Worried, in all probability, that the BTL market would overheat and any crash would result in a surplus of property being dumped back on the market. There was also a desire perhaps to protect the “dinner party landlord” from themselves.

3% stamp duty was levied on any second home purchase and a gradual taking away of the tax reliefs that higher rate taxpayers were receiving.

Forecasters have said that many landlords would pull up the ladder and cry “Enough!”.

From where I sit, and experts who know far more than I do, say that is not what has happened.

It isn’t just animals who evolve to make the lives of their future generations easier!

And following on from that notion, I think this has really helped professionalise the buy to let landlord space.

That’s a broad statement and of course, there are exceptions.

At House and Holiday Home we currently are lending BTL money to a few professional footballers looking to invest in property for the long term. But what we are seeing is landlords really doing all they can to maximise their position.

They are certainly looking at the Holiday Let market, an area my business knows well.

They are looking to wrap their properties up in Limited Company wrappers to negate the tax changes. We always insist customers take professional accountancy and tax advice at this important juncture.

So, in conclusion, the buy to let landlord in Britain is very much still alive.

He/She may be Acme Property Ltd now. They may be looking at some holiday lets in Devon where the tax rules are currently far kinder and they be looking at property in places such as Wales, The Midlands or The North West where in many cases the returns can be much stronger.

It’s fair to say it probably was all getting a little too easy and, as with property investment over the ages, maybe burnt fingers were on the horizon.

What I know is that is much harder to be a landlord now, (more rules recently announced about tenant eviction, of course).


Equally, at House and Holiday Home buy to let lending and advice is no longer the proverbially a walk in the park!

We really need to understand many lenders criteria about portfolios and rental stress rates to give our landlord clients the service they need and expect. Something we’re constantly staying on top of.

If you’d like to have a chat with one of our experts about a buy to let mortgage, then get in touch today. or 01453 887179