Over half of UK landlords will increase rent due to tax cuts, poll shows
More than half of UK landlords who took part in a new poll said that they are likely to increase their tenants’ rents as a direct result to tax changed announced in the Mini Budget.
Some 56% said they would need to respond with rent hiked to Chancellor George Osborne’s cutting of mortgage interest reliefs from 45% to 20%, in the poll by lettings agent Rentify.
The poll also found that 57% are likely not to expand their property portfolio beyond its current size in the face of the cuts and 23% said they may plan to sell off their current properties.
‘These statistics are a stark reminder that if landlords aren’t incentivised to be landlords then they will just stop buying. The Chancellor’s cutting of the mortgage interest relief remains a very unwelcome decision and one that could irreparably damage the approach of many buy to let landlords and quality of living for their tenants,’ said George Spencer, chief executive officer of Rentify.
Spencer said it is not good news coming on the back of recent research showing that more than half of 20 to 39 year olds will be renting property from private landlords rather than living in their own homes a decade from now.
He explained that the current mortgage reliefs helped UK landlords offset other costs such as high street lettings agent fees, home insurance, maintenance and repairs costs, as well as council tax and any ground rent.
‘Mortgage interest relief often makes up a large proportion of deductible costs for landlords, and reduces their tax bills significantly,’ he added.