The Intermediary – April 2025 - Flipbook - Page 27
BUY-TO-LET
Opinion
Bill – planning
realities
potentially deal with large numbers
of tenant challenges, etcetera. There
will probably need to be a large degree
of automation at play here, but will
that deliver fair results? A lot is still up
in the air.
Mass exodus
Am I expecting large swathes of
landlords to exit the sector because of
this? No. But it will clearly require a
much larger degree of planning and
preparation on their part – and that
of the leing agents they use – in
order to get to the level of rent they
might require to maintain ongoing
profitability, and importantly, to be
able to secure the mortgages they need.
That is a hugely important question,
and one that advisers might wish to set
their landlord borrower clients right
now, because rental levels are clearly
going to be hugely important in the
next mortgage recommendation.
Plus, of course, for purchasing
landlords – already hit by the further
increase in the Stamp Duty surcharge
– understanding what the current
market rent might be set at, and
therefore what is likely to be the
most rent they can secure, is going
to impact on their decision to buy a
property or not.
Overall, advisers might feel now is
the time to communicate with all their
clients about the Bill, its likely impact,
and what this will mean for financing
going forward.
In a couple of months, these
proposals become reality, and
they need to be aware of them and
plan accordingly. ●
April 2025 | The Intermediary
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