The Buy to Let Britain Report Edition three

The PRS in the spotlight

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In our last issue we documented the rapid growth of the PRS, and the growing returns the landlord population has experienced on the back of strong capital appreciation. In fact, we highlighted landlords were facing a prospect of a 642% return on investment over the next 20 years on capital gains alone – or indeed a 1,049% return should they reinvest their equity into a second property at the earliest opportunity.

But by the winter of 2015, the private rented sector had been in the spotlight. The Autumn Statement saw the addition of a new stamp duty levy on private rented sector purchases, while changes announced in the Chancellor’s Summer Budget would affect the way in which landlords are taxed, coming into play progressively from 2017.

We took a closer look at the impact this was likely to have on the market, and how investors were already reacting to the changes. We also examined the affordability of rents, and whether the changes announced in the Budget would affect landlords’ pricing.

As usual, we detailed the overall value of the private rented sector and its expansion within Great Britain, incorporating the latest official data to highlight much faster than forecast, with the PRS in England alone breaching the 5 million household barrier in September.