As the government starts its program of tax rises on landlords. It’sWe have had a chance to look at it and those in the industry including us believe its effects will include rent rises of between 20% – 30%, shrinking of the buy to let market and reduction of affordable housing.
A year back in April 2016 a 3% SDLT surcharge was applied to purchases of buy to let property and second homes. Now, the Government will restrict mortgage interest relief where it will tax landlords on revenue and not on profit, pushing many into higher tax brackets. With these additional tax changes it not clear exactly who will benefit – except the Government’s coffers. An equal playing field between homeowners and landlords is the purpose I think but I can’t help but feel that it is the tenants who will come off far worse.
A report from DSS Select has shown ⅔ of landlords from a survey of 500 landlords will need to increase rents to offset tax rises due to today’s tax change.
Spokesman from DSS Select, said, ‘The Government keep complaining about the shortage of affordable housing. Today’s tax hike will plunder this problem further. Our research shows an increase in rents is imminent to offset the tax hikes. It will give tenants less choice and put many properties out of reach. Undoubtedly the tenants will be hit the hardest once again, by the government tax increase. A major review of the impact of this policy by ministers is needed. Rents are already beyond many without this happening’.
DSS Select
