BBC Coverage: Will buy-to-let become unprofitable?
Jaye Cook, a Property Partner customer, was interviewed by the BBC about the impact of the government’s buy-to-let tax changes, in particular the phased withdrawal of mortgage interest tax relief. Jaye, who owns a number of properties in Kent, is now considering selling many of them, as the new tax rules could very well make his portfolio unprofitable. He has, increasingly, been investing in Property Partner as an alternative.
A study released by our research team has revealed that if interest rates were to rise by 2.5% over the next four years, mortgaged buy-to-let would become unprofitable in seven out of ten UK towns and cities. In this scenario, the average investment property would be making an annual loss of £325.
If traditional buy-to-let does become less attractive, many landlords are likely to choose Property Partner as a tax efficient and hassle-free way to invest in residential property. Watch the full clip below.