A few weeks ago, I wrote that I was concerned about the buy-to-let market. Nothing new there, you maysay it has long concerned me that people are relying on capital gains rather than rental returns to make their gains. But there is something new rough sums suggested to me that the changes to the tax relief on buy-to-let mortgage interest would push quite a few investors into negative cash flow even before interest rates rise to force sales (or at least discourage new purchasers), and possibly push prices of buy-to-let style properties down at the margin. Add in a couple of changes in interest rates (upwards) and carnage might not be far behind.
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