ARLA warns of investor pull out risk
Mon 24th Sep, 12:06:05 BST
Buy-to-let investors could pull out of the market if the tax system governing the market is changed, according to a new report from the Association of Residential Letting Agents (ARLA).
Despite 54 per cent of landlords saying they currently plan to purchase more buy-to-let properties within the next 12 months, the ARLA quarterly review and index claimed that ten per cent would sell all of their current residential rental investments, 28 per cent would sell some of their properties if changes were made.
Ian Potter, ARLA operations manager, said: "With the institutions less interested in the private rented sector and private equity companies not filling the gap, the loss of any private individual investors would seriously affect the rental market and severely curtail choice in housing.
"Private buy-to-let investors have refinanced the private rented sector and restored social acceptability to renting," he added.
Earlier this year, the Guardian reported that investors had claimed between £2.08 billion and £2.18 billion in tax relief on interest on buy-to-let mortgages in 2006, claiming could rise to £3 billion by 2008.
Despite 54 per cent of landlords saying they currently plan to purchase more buy-to-let properties within the next 12 months, the ARLA quarterly review and index claimed that ten per cent would sell all of their current residential rental investments, 28 per cent would sell some of their properties if changes were made.
Ian Potter, ARLA operations manager, said: "With the institutions less interested in the private rented sector and private equity companies not filling the gap, the loss of any private individual investors would seriously affect the rental market and severely curtail choice in housing.
"Private buy-to-let investors have refinanced the private rented sector and restored social acceptability to renting," he added.
Earlier this year, the Guardian reported that investors had claimed between £2.08 billion and £2.18 billion in tax relief on interest on buy-to-let mortgages in 2006, claiming could rise to £3 billion by 2008.
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