A recent Buy-to-Let Conference by UK Finance discussed the effects that the tax and regulatory changes in the last three years has had on the buy-to-let sector, and the direction that the market has been heading in the last 18 months. Market overview The most pronounced effect that these changes have had on the market is a significant reduction in new home purchases. As landlords’ profitability continues to tighten and it gets more difficult to enter the market, fewer small-scale or prospective landlords are purchasing residential properties, whilst large-scale landlords increase in prominence. This waning demand in house purchase has meant that landlords, overall, are now buying residential properties at a similar rate to selling them, meaning the stock of outstanding mortgages is no longer growing at the rate we’ve previously seen. Remortgaging is now driving gross lending in the buy-to-let space, as two- and three-year fixed rate deals written in 2016 come to an end. What’s next? Over the last few years, the result of the tax and regulatory changes has been a reduction in demand which has led to large-scale landlords now moving to the fore of the market. It appears that home purchases have broadly stabilised, but the final tax relief cut in April 2020 is something to keep an eye on as this could have a further effect on transactions. https://local.google.com/place?id=15022266394329617825&use=posts&lpsid=8957342502776788025