Tax rises for landlords set to cause 30 per cent hike in rent prices

Thu, 06 Apr 2017

Tax rises for landlords set to cause 30 per cent hike in rent prices
The introduction of tax rises for landlords today is expected to impact renters by as much as 30 per cent, according to the Residential Landlords' Association (RLA).

The RLA conducted a survey which found two-thirds of member landlords think they are going to have to increase their rent in order to cope with the new tax. Meanwhile, 58 per cent intend to reduce their investment in property, as experts predict landlords will have to decide whether to abandon ship or increase prices.

New government measures designed to cut down on landlords' mortgage interest relief, and make the buy-to-let sector less appealing, will see letting out property become more expensive. While landlords previously paid tax on their profit, they will now have to pay it on their turnover.

According to the RLA, independent experts believe that in order to cope with the extra costs brought about by the tax rises, landlords will need to increase rents between 20 per cent and 30 per cent.

Alan Ward, chairman of the RLA, said: "Today's tax increases contradict everything the government has said about needing a larger rented sector to give tenants more choice and more affordable housing.

"It is tenants who will be hit hardest by these punitive tax increases. Aside from likely paying more in rent, in many places they will face a growing shortage of affordable places to rent."

"We call on ministers to undertake a major review of the impact of this policy and if all the predictions about its impact are right, to abolish the changes in the Autumn Budget."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.




mths

Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company

HomeBuyService.co.uk is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy
FAQ
Sitemap

Get in Touch