Budget - PwC comments on impact of interest relief withdrawals on buy-to-let property
Published at 14:47 PM on 08 July 2015
Robert Walker, PwC real estate partner, said:
"Today's changes do nothing to address the fundamental lack of supply in the UK housing market and ultimately may backfire and hit people who are having to rent.
"We could see buy-to-let investors feeling the squeeze and putting up rents. This would have a major impact on Generation Rent.
"Moreover, if interest rates increase over the coming years, and rental yields don't keep pace, investors could be paying tax on a loss.
"Pensioners wanting to make the most of the recent savings freedoms could now be rethinking what they do with their pension pots.
"The Chancellor is concerned about the level of funding in the buy-to-let market but today's proposals don't tackle this head-on. Some form of regulation or safeguards will be needed to avoid excessive buy-to-let mortgages, otherwise these changes will only fuel the current housing problems."
ENDS
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