I am writing in reference to the news that buy-to-let (BTL) landlords could be forced to stump up more than 60 per cent deposits in some locations, (FT Adviser, 5 July).
The choking of BTL mortgages is exactly what the government and the vast majority of the public wanted in order to help first-time buyers (FTBs). The tax changes will give FTBs an advantage over BTL investors for the first time in 20 years, and it is something I have been advocating for the past six years.
Landlords with highly geared BTL mortgages need to start selling off their portfolios as quickly as possible, as there will undoubtably be a fall in property prices as the income tax rules start to bite from April 2017. FTBs need to wait a little longer, I believe, before they commit to purchase, or offer a significant discount to today’s asking price by any vendor.
Colin Cloy
Director,
Pendulum Wealth Management,
Horsham,
West Sussex
