With the latest changes in tax relief in April, times are getting increasingly difficult for landlords. The introduction of the 3% Stamp Duty surcharge for those buying additional properties, along with stricter mortgage conditions, has overall made many landlords reconsider staying in the buy-to-let sector.
Law firm Aberdein Considine has found that two thirds of homeowners have been deterred from investing in a second home because of the 3% Stamp Duty surcharge, which was introduced in Scotland two years ago. Along with the phasing out of mortgage interest relief, the result has been a fall in sales across more than half the country.
However, Adrian Sangster, national lettings director for Aberdein Considine, has stated the determined message that despite all of this upheaval, the buy-to-let sector in Scotland continues to provide good opportunities for investors who can “ride out the storm”.
Sangster said: “The additional tax, together with the staged withdrawal of relief on mortgage payments by the UK government, is undoubtedly having a detrimental impact on the Scottish property market.
“By targeting landlords, politicians north and south of the border are squeezing one of the biggest and most powerful buying forces out of the Scottish property market, which is already affecting sales in certain areas.
“However, this is only going to end one way – with rents increasing due to fewer good quality private lets being available. Landlords who can adapt to this new climate for the private rental sector stand to reap huge benefits in the medium to long-term.”
In order to take action and help Scottish landlords with these changes, tax experts from Anderson Anderson Brown LLP and letting industry specialists from Aberdine Considine are holding a conference in Edinburgh.
The Edinburgh Landlord Conference will be a free event for all landlords who attend, and its aim is to primarily help those with multiple property deals with recent tax and legislation changes.
It will take place at the Radisson Blu on the Royal Mile, from 8am to 12pm on Thursday 28th June. Free tickets can be ordered here.