Property purchases amongst buy-to-let (BTL) landlords have fallen. The combination of new tax regulations (where BTL landlords are progressively being unable to deduct their mortgage interest from their rental income) and the extra 3% stamp duty land tax charge for any additional home or investment property purchase; have both impacted the property investment sector across the UK. Clearly, property investing within the UK has become increasingly difficult and more expensive to get into – overall making it a less attractive investment avenue for inexperienced property investors.
However, for first-time buyers – this is excellent news. The reduced activity within the BTL property market has led to fewer purchases amongst BTL investors and landlords. Competition for property has thereby fallen; providing first-time buyers increased opportunity in securing their first home.