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

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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