{"id":17088,"date":"2018-05-31T15:30:10","date_gmt":"2018-05-31T14:30:10","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=17088"},"modified":"2018-05-31T15:30:10","modified_gmt":"2018-05-31T14:30:10","slug":"landlords-competing-with-first-time-buyers-for-affordable-homes","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/landlords-competing-with-first-time-buyers-for-affordable-homes\/","title":{"rendered":"Landlords competing with first-time buyers for affordable homes"},"content":{"rendered":"

With some landlords looking to sell off cheaper properties in the year ahead, there could be more opportunities ahead for first-time buyers as well as buy-to-let investors looking for well-priced property.<\/strong><\/p>\n

The National Landlords Association (NLA) conducted its quarterly poll in April which found that 380,000 landlords – representing 19% of the total 1,043 respondents – are planning on selling a rental property<\/a> in the coming year. Of these, almost half (45%) are owners of apartments or flats, which are typically the cheapest<\/a> type of property available, while 33% have terraced homes they are considering selling.<\/p>\n

This is significant for first-time buyers<\/a>, indicating that an influx of affordable homes may soon by coming to the market, while buy-to-let landlords looking to invest or expand their portfolios<\/a> could also benefit.<\/p>\n

Less rental homes available<\/h4>\n

However, with only 7% of respondents saying that they specifically hoped to sell their properties to other landlords, there might be some competition in the market between first-time buyers and landlords looking to snap up the homes<\/a> as they come onto the market.<\/p>\n

While the figures are good news for those looking to buy<\/a>, it may also spell increased competition for renters if less homes become available to let due to landlords selling up, as pointed out by the NLA’s CEO Richard Lambert.<\/p>\n

“These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy.”<\/p><\/blockquote>\n

“In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent<\/a>, or have no other option but to rent.”<\/p>\n

A petition against Section 24 tax changes<\/h4>\n

Section 24 tax changes<\/a> are currently being phased in, resulting in landlords being unable to claim the full tax relief on mortgage interest payments they had previously been entitled to.<\/p>\n

A petition has been set up asking the government to reintroduce full mortgage interest relief, which has received 14,594 signatures to date<\/a>, and is supported by the Residential Landlords Association (RLA) after some figures suggested it had begun to affect the country’s rental homes market.<\/p>\n

Earlier this week, the government released an official response to the petition, stating: “By restricting landlord\u2019s finance cost relief to the basic rate of income tax we are helping to reduce the advantage landlords may have over homeowners<\/a> in the property market.”<\/p>\n

It also adds that there is some good news for landlords, as the tax change will only affect a small portion of people.<\/p>\n

“Landlords can still claim income tax relief at their marginal rate of tax on day-to-day running costs incurred in letting out a property, such as letting agent fees and replacing furniture.”<\/p><\/blockquote>\n

“Finance costs are different to other expenses as having a mortgage<\/a> allows the landlord to purchase a more expensive property and incur larger gains on the investment than they would have done without it.<\/p>\n

“Using actual self-assessment data, HMRC estimate that only one in five landlords will pay more tax on their property income because of this measure.”<\/p>\n","protected":false},"excerpt":{"rendered":"

With some landlords looking to sell off cheaper properties in the year ahead, there could be more opportunities ahead for first-time buyers as well as buy-to-let investors looking for well-priced property. The National Landlords Association (NLA) conducted its quarterly poll in April which found that 380,000 landlords – representing 19% of the total 1,043 respondents… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":17112,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4],"tags":[73,15,341],"class_list":["post-17088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","tag-first-time-buyers","tag-landlords","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/17088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=17088"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/17088\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/17112"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=17088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=17088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=17088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}