Nationwide Announce Reduction in Profits Following Buy-to-Let Changes
Recent tax changes affecting landlords have led to a rapid decrease in buy-to-let mortgages as the financial sting takes hold. As well as forcing many landlords to either sell their rental properties or reduce their portfolio, the affect is also hitting the profit margins of high street lenders such as Nationwide.
In a bid to create more homes for first-time buyers, the Government has introduced a range of tax changes which have hit landlords hard. Phased mortgage tax relief for high income tax payers, increased stamp duty, the discontinued ”wear and tear” allowance and more stringent buy-to-let mortgage rules have led to a massive downturn in the number of people seeking out buy-to-let mortgages.
Downturn in Buy-to-Let Mortgages
According to a recent report in the Daily Mail, the UK’s biggest building society, Nationwide, announced a £886million decrease in profit in the last three quarters of 2017, which equates to a 6% slump compared to 2016’s figures over the same time period.
In addition to fewer landlords taking out buy-to-let mortgages, it’s been revealed that more landlords were now in arrears with their mortgages. Higher house prices and lowered rents could be responsible for this downturn, with many landlords struggling to make a large enough yield on their rental properties to cover their mortgage repayments. A slow-moving property market is also making it difficult for landlords to procure a Need a fast house sale for property they need to offload, particularly if they have tenants in situ.
Although there has been a large downturn in potential landlords taking out buy-to-let mortgages, there hasn’t as yet been a corresponding rise in the number of first-time buyers getting onto the property ladder, leaving a slew of properties of the market.
Still a Need for Privately Rented Accommodation
A combination of Brexit, low wage increases and high inflation have made many people cautious about making such a large financial commitment. However, there is still a massive need for private rental accommodation in the UK as local councils and housing associations simply do not have enough housing stock to cope with demand.
Many landlords are looking further afield to increase their property portfolio, looking at areas with lower house prices, suppressed housing markets and a greater number of people looking to sell their house fast. These types of areas usually offer very good returns on investments and are more likely to give the yields required by lenders to cover buy-to-let mortgage repayments.
Companies That Buy Houses Fast Could Help
Property buying companies that operate in areas where people are more likely to need a fast house sale are well placed to organise property sales in areas attractive to tenants and help those who want to buy property for cash.
Buyingpropertyfast.com are Approved property buyers which specialise in helping people to sell their house for cash. Selling a house fast allows both buyer and seller to move quickly with their plans, without having to worry about renovations to the property or how to deal with any sitting tenants.