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Revealed – how and why rents will rise after buy to let tax changes
New research has attempted to quantify the number and scale of rent rises that are likely to take place as landlords try to absorb the latest buy to let rule changes.
The research, from investment consultancy Property Partner, shows that 37 per cent of landlords may have to increase rents to compensate for measures such as higher stamp duty, the removal of wear and tear allowance, and the phasing out of mortgage interest tax relief on investment properties.
Over a third of landlords – 38 per cent – say they would also consider increasing rents to compensate for higher interest rates. Following the first rate rise above 0.5 per cent in a decade seen in August, renters may feel the pinch as costs are passed on.
“The government wants to protect renters and is increasingly recognising the crucial role of the rental sector within the wider housing market” says Mark Weedon, head of research at Property Partner.
“It is ironic then that the government’s own initiatives are forcing landlords to pass on costs to tenants, impacting those who choose to rent, and making it harder for those with ownership ambitions to save for a hefty deposit” he continues.
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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https://www.lettingagenttoday.co.uk/breaking-news/2018/10/revealed–how-and-why-rents-will-rise-after-buy-to-let-tax-changes
