Brokers fear 'landlord exodus' following property tax reforms and Renters’ Rights Act
69% of brokers feel that the property tax reforms likely to be announced in the Budget will have a negative impact on the housing market.
Mortgage brokers object vehemently to the property tax reforms rumoured to be announced in next month's Budget and the Renters’ Rights Act, which gained Royal Assent yesterday, a new survey reveals.
Brokers, responding to the latest Business Outlook Survey from Family Building Society, overwhelmingly disapprove of the latest government interventions in the housing market.
Four out of five believe that the Renters’ Rights Act will have a negative impact on both landlords and tenants, predicting that it will accelerate the exodus of the former and that rents will increase across the board. Among the forceful broker verdicts were that it is “really awful. It will drive more landlords out of the market and will lead to fewer buy-to-let properties available to rent.”
In addition, 69% of brokers feel that the property tax reforms likely to be announced on the 26th of November Budget will also have a negative impact on the housing market. Extending National Insurance to landlords and replacing stamp duty with an annual tax, for example, will also have “a massive impact on the housing market which could take a dive.” replied one broker.
Brokers were unconvinced the Government would achieve its target of building 1.5 million new homes by 2029, with 94% stating it would not happen. “Absolutely no chance” was one view.
Alistair Nimmo, director of marketing at Family Building Society, commented: “Our survey, tracking the sentiments and views of brokers on the mortgage and housing market in general, which we have been running since 2023, reveals the depth of feeling to the government’s tinkering with property tax and proposed legislation. Brokers are also nervous of the continued speculation about the Budget next month and the potential effect on the housing market.
“The survey highlights that first-time buyers remain the most active mortgage seekers although brokers report that the desire for younger people to get on the property ladder is down from 76% reported April to 64% this time. 75% of brokers recorded an increase in applications for two rather than five-year fixed deals, reflecting uncertainty in future interest rates.”
