A survey has revealed that 31% of people who rent their home feel that they will never own property. One of the main reasons for this is the high cost of deposits for new homes.
The survey, carried out by Bilendi and cited in a September 2017 LandlordNews.co.uk article, questioned 2,000 people who rent their accommodation. Of those interviewed, 21% felt that the supply of rented accommodation will diminish as a result of the of the abolition of commercial mortgage interest tax relief, which they believe could cause many landlords to abandon the buy-to-let sector.
Due to increased costs to landlords, many tenants fear that their rents will increase. Landlords have already raised rents as a consequence of tax changes for 6% of the renters surveyed.
The fact that many renters have given up hope of owning their own home does mean that there will be a continued demand for rented accommodation, but changes by the government to buy-to-let regulations could make renting accommodation more expensive. If rents rise, then this will result in taking longer for tenants to save up for a deposit to buy their first home.
Although there has been a drop in buy-to-let mortgage applications, there are still many areas of Britain that provide profitable buy-to-let investments for landlords. Interest rates on commercial mortgages remain low, and a mortgage broker can find the best possible deals and help landlords with the mortgage application process.