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Trade body says 20% of landlords set to reduce portfolios in 2018
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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The National Landlords Association says 20 per cent of its members plan to reduce the size of their portfolios in the next year – a 10 year high.
The NLA announced the figure at the launch of a quartet of videos designed to assess and explain the impact of tax and rule changes on landlords and tenants.
The four videos contain research, conducted by Capital Economics for the NLA, which shows that landlords and tenants will pay more than their fair share in tax as a result of changes made by the Government to curb buy to let activity in the private rented sector.
These include the withdrawal of mortgage interest relief for higher and additional rate tax payers, a three per cent surcharge on purchases of additional property, and the banning of upfront letting fees for tenants.
“The videos were created to explain simply some quite complex policies, for both landlords and their tenants. They, along with our own research, show that the government needs to look at the impact these policies will have on the private rented sector” says NLA chief executive Richard Lambert.
“More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.
“It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.”
