Buy to Let
With the Chancellor, George Osborne, ending tax breaks and adding stamp duty on second homes many landlords will be looking to ‘offload’ and sell properties to avoid the financial impact the changes will bring.
It is estimated that half a million buy to let properties could be put back on the property market in the next year. This is potentially good news for first time buyers as this move could potentially drive down house prices and free up the housing market. Indeed, the National Landlords Association (NLA) has suggested that the buy to let sell off could continue with an extra 100,000 properties coming onto the market every year until 2021.
However there is no guarantee that these properties will be properties that appeal to first time buyers as landlords are more likely to sell less desirable properties and in less desirable areas.
The greater impact will be on tenants who could potentially lose their home if a landlord decides to sell the property. These tenants may still not be able to afford to buy a first home and as more and more the buy to let properties are sold this will surely mean fewer and fewer properties available to rent. This could also mean rent increasing as competition for rented accommodation increases!
A recent survey by the NLA has suggested landlords looking to sell within a year has doubled since July 2015 and now stands at 19 per cent.
This scenario could create a situation where a landlord is looking to sell the property but the tenant is unable to find alternative accommodation.
Evicting a tenant without following the proper legal process is illegal and could result in a hefty fine and a possible custodial sentence for a landlord therefore it is strongly recommended that legal advice is sought before commencing such action.
For tenants there are a number of charities where help and advice can be found such as Shelter or the Citizens Advice Bureau.
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