The Times - How the budget changes affect landlords
Controversial cuts to tax relief on buy-to-let loans announced in the budget may already have investors worried, but even more restrictions could be introduced if the Bank of England wins the right to regulate the buy-to-let sector later this year.
Brokers said the move could encourage investors to buy properties through corporate structures instead which continue to benefit from mortgage interest payments, although they can be more expensive to set up and to sell on.
For many expensive buy-to-let homes in London, the rental income generated by the property isn’t actually sufficient to allow landlords to secure a large enough mortgage to buy the property, adds Aaron Strutt, of Trinity Financial, a broker.
“We are starting to see some of the lenders offering more generous rental calculations in order to offer lager loans, but the rates and fees tend to be more expensive.”
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