End of the ‘buy-to let dream’ for middle-classes

Landlords reluctant to rent to non UK passport holders
Right to Rent policy discourages landlords from letting to non UK passport holders

With the introduction of tough new mortgage affordability tests from next year, experts have warned that it’s the beginning of end of the ‘middle-class buy-to-let dream’.

Citing concerns over “financial stability”, Philip Hammond, the UK Chancellor, has announced additional rules on buy-to-let mortgages. Under the plans, affordability checks are to be brought in, which will require investors to prove they can make a profit of 25% from tenants even if large rate rises make their mortgage more expensive.

This will come as a blow to many potential property investors who may be considering turning to buy-to-let to fund retirement income after being effectively barred from putting more money in to their pensions by the Government.

 

Full story available from The Telegraph: http://www.telegraph.co.uk/news/2016/11/16/buy-to-let-crackdown-will-end-the-dreams-of-middle-class-investo/

 

RentPro has been providing property management software for over 10 years. Our solutions are available in a number of plans for landlords and letting agents alike.

 

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