Due to tax changes made over the last 18 months, almost 50% of landlords in the UK are taking steps to recoup their costs.
Among changes being considered are selling some of their properties, increasing rents and even quitting the rental business altogether. Some landlords are considering self-management of their properties, rather than having a letting agent, so that they can reduce costs.
The survey, conducted by MyDeposits, revealed 44% of landlords believe that changes must be made to offset the tax changes introduced by the government, including increased stamp duty, phasing out of tax relief on buy-to-let mortgages and the loss of the tax relief for wear and tear.
MyDeposit, the tenancy deposit scheme, stated that the full impact of the tax changes will not be felt for another three years, as the mortgage interest tax relief will be reduced gradually until 2020. According to the report, most private landlords use buy-to-let to supplement their income, rather than it being a full time occupation. Up to four properties are owned by 86% of respondents, while 8% have between five and ten. A quarter of respondents said that they would have to increase rent to cover their losses.
Almost half of the landlords surveyed said that they would remain within the private rental sector, although almost a quarter said that they intended to sell up during the coming five years.
As interest rates remain low, buying a property may be a viable option as an alternative to the rising expenses of rented accommodation. Mortgage advisors attend CeMAP training courses to gain the knowledge required to assist first-time buyers in making that decision.
