The Guardian highlighted further changes for landlords this week, as new rules for ‘Houses in Multiple Occupation’ (HMO’s) come into force.
The new Government measures mean that all properties occupied by five or more people from two or more households will require an HMO licence (previously it was only required on properties with three or more storeys). Recent figures suggest this could mean as many as 177,000 landlords will need to apply for a licence.
With a number of changes in the Buy-to-Let market over recent years, including the introduction of the stamp duty surcharge and the phasing in of new rules for tax relief, demand has dipped. The good news for investors is that lenders have responded to this by dropping mortgage rates to very low levels, and in some cases offering to pay legal and survey costs for those looking to remortgage.
Mortgage rates have also come down in the residential market, reported the Times. As the end of the year approaches, lenders are keen to meet lending targets, as well as offsetting the uncertainty surrounding Brexit and the resulting shortage of buyers. Data shows that mortgages available up to 95% of property value are now the lowest on record.
What the papers said about Buy to Let and Brexit mortgage wars