top of page

Landlords Contemplating their Future


The future is not looking very bright for landlords. Recent government tax changes have caused a great deal of upset in the buy to let community, with many landlords feeling as if they are being penalised.

*****Whoops! Looks like this is an old post that isn’t relevant any more :/ *****

*****Visit the blog home page for the most up to date news. *****

From next April, mortgage tax relief will be gradually phased out and many more landlords will end up in the higher 40% tax bracket. The effect of this loss will cause some landlords’ tax bills to double.

Property is a Pension Pot for Landlords

There are approximately two million landlords in the UK. For years now, the buy to let sector has been incredibly lucrative. Canny investors have snapped up properties, taking advantage of low interest rates to secure a second income and a nest egg for their retirement. Property has long been viewed as a ‘safe’ haven for savings, so it’s no surprise that many landlords are using their property portfolio as a pension fund.

April Tax Changes for Landlords

At the moment, landlords with mortgages can off-set their mortgage interest against their earnings, but from April this will no longer be possible. If you don’t have a mortgage, or your mortgage is relatively low, this won’t be too much of a problem, but if you are mortgaged to the hilt, you could end up losing money on your investment.

For landlords in this position, the only option will be to raise rents or sell up. Neither of these two options benefits tenants. Experts say the perfect storm is brewing, whereby landlords raise rents or sell up, tenants have to leave, but the supply of rental properties is smaller, so prices continue to rise. In summary, nobody wins.

0 views

Related Posts

See All

Tenant demand has continued to increase

Sourced Properties Weekly List to Your Email inbox The August sentiment survey by Royal Institution of Chartered Surveyors (RICS) gauging the mood of agents, showed improvement in the lettings market.

Property Down Valued

In a recent survey by Bankrate UK, a mortgage comparison service, questioned buyers about their prospective purchases in the last 6 months in the UK. 46% revealed they had their prospective property d

Will Cardiff House Prices Crash?

House prices in the UK are starting to fall after 8 years of stable growth. This is according to recent house price indices. At the moment prices are still fairly stable, but market fluctuations have

bottom of page