The buy-to-let market has had to cope with stress tests imposed by the Prudential Regulation Authority this month and from April the amount of mortgage tax relief landlords can claim will be reduced.
The number of buy-to-let products on the market fell by 74 in January – the biggest withdrawal since March 2009, Moneyfacts data reveals.
The buy-to-let market has had to cope with stress tests imposed by the Prudential Regulation Authority this month and from April the amount of mortgage tax relief landlords can claim will be reduced.
Charlotte Nelson, finance expert at Moneyfacts, said: “Withdrawals have not been limited to just a few providers... with the reductions having been spread across the board.
“With the new rules reducing the amounts landlords will be able to borrow, it is little wonder that the 75% loan-to-value sector has seen the largest reduction in product numbers, falling from 606 to 540 in just one month.
“Alongside tougher affordability, major changes to the way in which income from property rentals is taxed will be coming in April.
“Lenders are perhaps withdrawing products to get back to just their ‘core’ range in an attempt to wait and see what other providers will be doing in the run up to April.
“2017 is set to be an uncertain year, which could be a lethal cocktail for landlords, particularly now there are less products on the market. Anyone unsure about their options should seek out a financial adviser.”
