Taylor Scott International News
The majority of landlords in the UK believe the Government’s tax changes last year will discourage investment in the buy to let sector, new research suggests. Some 86% believe it will prevent investment some 90% think it will also result in higher rents and overall they believe it will ultimately lead to a shortage of available of rental homes. The research from lettings and property management company Orchard and Shipman Group also reveals that a quarter of landlords will be selling some, or all of their properties, but just 18% of landlords said they would pull out of the market all together. The research also reveals that over 90% of landlords believe they should be free to deduct legitimate costs, just like any other business. More than half of landlords surveyed said they would be raising rents in 2016 to cover the increased financing costs. ‘The Government’s changes to the way buy to let investors are taxed will inevitably impact revenue. The shortage of housing, a growing rental market and rising property prices is driving increased demand for rental properties,’ said Shane Spiers, chief executive officer of Orchard and Shipman Residential . ‘With these market conditions at play, it’s no surprise that landlords will be putting up rents to supplement their income. Unfortunately, it is tenants that will feel the brunt of the tax changes,’ he added. However, he pointed out that the Government’s ambition to make buy to let look less appealing, may yet be thwarted as many landlords and property investors are committed and passionate and will do whatever it takes to protect their interests. ‘Our research shows that the majority of landlords are looking at ways to recover the potential drop in revenue and we are advising landlords on the options available to them. I believe that the buy to let market will pull together to ensure it continues to provide much needed accommodation to meet growing tenant demand,’ added Spiers. Taylor Scott International
Taylor Scott International, Taylor Scott
