April 1st tax change

Interest in buy-to-let could plummet

Interest in new purchases from buy-to-let investors dropped 27 per cent in March compared to the same month last year as April 1st tax change starts to bite, according to Rightmove. The fall reverses the upward trend between December and February which brought a 24 per cent year-on-year increase in buy-to-let enquiries, indicating a potential slowdown in new investor purchases at least in the short-term. Demand from home-hunters is at an all-time high with a record number of Q1 enquiries, so the pause from investors could give some first-time buyers more of an opportunity to make a move. Some buy-to-let investors took a break from looking for new properties in March as the new tax changes deadline loomed, the new data from Rightmove reveals. Whilst Rightmove recorded its busiest ever Q1 for enquiries to estate agents, the intentions of buyers shifted in March, with the number of people saying they were planning to buy a property to rent out dropping by 27 per cent compared to the same month last year. This contrasts with the increase in interest seen from investors between December and February (+24 per cent year-on-year) as they tried to make last minute purchases before April’s additional…

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