Shares in companies with exposure to buy-to-let had a rocky day yesterday after the Budget Statement.
Martin & Co, founded as a lettings business although it now also handles sales, saw shares fall more than 10%.
However, competitor Belvoir – with a very similar business model – saw its shares rise very slightly.
Foxtons’s shares fell yesterday morning but then recovered to show a small gain.
Countrywide shares, which dropped over 2% following the announcement of a hike in Stamp Duty Land Tax for buy-to-let purchasers, finished yesterday less than 1% off.
Aldermore, a lender involved in the buy-to-let market, saw its shares fall 3.5% following the Autumn Statement.
Buy-to-let specialist lender Paragon also saw its shares drop yesterday, falling back by 3.5%.
Comments (1)
The writing has been on the wall some time, that gov wanted home ownership and social housing to make a comeback.
In some ways investors into BTL have experienced a fantastic run. However, many in the coming 6-24 months may wish they started exit sooner.
In 2017+ interest offset on high LTV BTL mortgages will catch many novice and in cases experienced investors out. Then when wanting to sell existing BTL’s SDT will take a nasty bite sized chunk back to the Treasury.
In 2018 (Aprl) rough rentals in the two lower EPC brackets will stunt shabby stock from being relet, where such units become unlawful to let units.
Such stock will go to developers/speculators to revamp into resale units to home buyers.
I estimate that we’ll see a 30% shift (forced by government legislation timelined to kick in).
Consumers are now going to need skilled agents who can best advise and negotiate ways forward. NOT budget Bill who bids cheap access to main portals.
The other thing to kick in will be novice landlords NOT gaining vacancies due to wrong issue of section 21’s, Judges will likely throw evictions out as notice won’t have been at 4 months.
Using good agents will justify better fees, over budget marketing and **** advice.