The majority of millennials still believe the buy-to-let sector offers a worthwhile investment opportunity despite recent legislative changes.
83% of potential younger investors still feel that buying a second home is a wise investment, according to a survey carried out by Perrys Chartered Accountants.
However, for many, the changes to stamp duty rates on additional property and current economic conditions caused by Brexit would deter investment in the short term.
Almost a third (28%) are concerned by Brexit and the impact this will have on property investment whilst 29% were concerned by the increased stamp duty land tax placed on additional dwellings.
During the summer, an extensive Residential Landlords Association (RLA) survey of more than 6,000 landlords intimated that almost half (46%) would look to dilute their investments if Section 21 was enforced.
Whilst many landlords are rethinking their investments in the current climate, the sector could benefit from increased millennial investment in the future.
Donna McCreadie, buy-to-let tax specialist at Perrys, said:
“Buy-to-let is still a solid long term investment despite what current market indications and the drop off in purchases might suggest. It’s interesting that the younger generation still sees it as a way to plan financially for the future. However, there are many things to consider before jumping in, including stamp duty charges, how income tax might be affected and what the return on the investment is likely to be.”
“Investing in a property is a long term plan rather than a quick fix to financial freedom so it’s important to gather as much information as possible and speak to a professional tax specialist and mortgage advisor before making a commitment.”
Do you think more people will invest in additional property now that Brexit is reaching a definitive conclusion?
