Brokers in Scotland are more confident about the future of the buy-to-let market compared to the rest of the UK, according to research conducted by Legal & General.
Recent Government measures aimed at stemming the tide of the buy-to-let market and the prospect of looming changes to landlord tax relief have led some to question the future viability of investing in buy-to-let, but the research shows that positivity prevails in Scotland, where 63% of brokers believe that the buy-to-let market will remain the same size as 2015.
The positivity amongst advisers in Scotland is followed by brokers across the border in England, where 57% of brokers surveyed in Nottingham predicted that that the buy-to-let market would either expand or remain the same this year, followed by 49% in London. However, opinions regarding the future of the buy-to-let market varied significantly across the UK, with 71% of intermediaries in Manchester believing that there will be a reduction in the sector in 2016.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Despite a whirlwind of changes to the buy-to-let market, including the Government’s stamp duty hike and the reductions in tax relief on the horizon, it’s clear that a large number of brokers remain confident that buy-to-let will remain strong in 2016. Though there are concerns that Government interference could mean a reduction in buy-to-let activity this year, our research shows that many brokers in both England and Scotland believe the market to be well positioned to absorb the impacts of these measures.
“Even now, amid the uncertainty brought about following June’s referendum result, borrowers will be looking to remortgage their buy-to-let properties as a potential reduction in rates looms. Brokers need to grasp this opportunity by contacting their books now to ensure these individuals get the crucial advice they need when it comes to securing a better rate on their mortgage.”