Figures from the Banking and Payments Federation Ireland indicate there’s no Nevertheless, anecdotal evidence from real-estate agents suggests that the …
Is the view of buy-to-let losing popularity? What do landlords have in mind?
UK answer: It’s certainly taken a bit of a hit, but so far seems fairly healthy.
- Stamp duty on second properties makes it more expensive to buy in many places, reducing returns.
- Changes in claiming interest as an expense in tax make it less profitable (assuming you can make a profit) .
- The removal of the fixtures and fittings tax benefit is reducing profits for some in the low-end furnished market.
- Increased costs from HMO licencing, right-to-stay checks, etc reducing profits
- Overbuilding of specific sorts of housing in some areas, like small flats.
- Slight increase in costs of BTL mortgages.
- At the lower end of the market, restricted housing benefits and low income growth limit the amount you can increase rent by.
- Increased late or non-payment of rent, and possibly a hugely expensive eviction due to the above pressures on tenants.
On the other hand, there are pressures that are increasing profits:
- House building is still far too low for demand in most places
- Lack of public sector housing
- Increase in single person households