BofE believe stamp duty won't impact BTL

The Bank of England's May 2016 Update 'Agents’ summary of business conditions'  fed back on their perceived prospects for the UK housing market following the stamp duty changes for BTL's.

The bank's industry contacts reported seeing - 'a pickup in house purchases by BTL investors in Q1 as they (investors) sought to complete purchases ahead of April’s changes, and expected activity in Q2 to be correspondingly subdued. 

The majority of contacts - 'did not expect the tax changes on their own to lead to a substantial reduction in BTL purchases. '

But some shared concern - 'that some landlords did not fully appreciate the implications of reduced interest relief from April 2017 — which was seen as the more significant of the tax changes. That could lead to downside risks to activity in the sector further out, if it subsequently led landlords to make a sharper adjustment to their portfolios.' 

Read the full report - Bank of England's May 2016 Update 'Agents’ summary of business conditions' 

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