Insurance News Archive
New costs facing buy-to-let investors
The introduction of legislation for buy-to-let investors could attract additional costs, according to latest research by Business Moneyfacts.
The introduction of the new laws was designed to raise standards in the rented property sector but could mean that some house of multiple occupation (HMOs) could rack up additional fees.
Lee Tillcock, Business Moneyfacts' editor, commented that licence costs of up to £1,250 and possible modernisation expenses could be an additional financial burden for investors.
He went on to say that research from the National Association reveals that over 60 per cent of landlords will be less likely to purchase HMOs in light of the legislation.
Mr Tillcock puts this possible apprehension down to the recent A-Day confusion as he believes many landlords were waiting to enter the market and invest in a self-invested personal pension (Sipp).
"The U-turn by the chancellor, blocking residential property investment from being held in a Sipp has left many potential investors' plans in ruins," he concluded.
© Adfero Ltd
12 Apr 2006