By Clare Tobin, Chief Operating Officer, Leaders
With so many people dependent on renting, a healthy rental market is crucial to the overall UK housing market. It’s therefore very disappointing to see the Government introduce measures that are potentially damaging to the sector.
This change in tax relief for landlords will not only affect landlords, it will also be detrimental to tenants because ultimately, if landlords’ margins are squeezed, they will be forced to increase their rents to make their investments work. As it is, there are not enough properties available to meet tenant demand in many parts of the UK and rents are already high.
It is important for landlords to now consider the detail of the changes and use the graduated rate of introduction of this change, which will take place between 2017 and 2020, to plan their finances. Prospective landlords need to factor in the lower tax relief when calculating their yields to be sure they are clear on the viability of any investment they are considering. We are able to give landlords expert guidance to help them meet this new challenge, whether they are experienced with a large portfolio or just about to make their first buy-to-let investment. Consulting a knowledgeable expert to make the right decisions at every step of an investment is now as important as ever for landlords who want to get the most from their property or portfolio.”
Leaders, established in 1983, is one of the UK’s largest residential property groups with over 100 branches across the UK specialising in lettings, sales, buy-to-let and investment finance.
