X
X
Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Opinions on The Budget From The Property Industry

There were many talking points after the Summer Budget. Let's hear the opinions of those in the industry on just some of the changes announced.

Changes to landlords that are higher rate tax payers
The Chancellor slashed the tax relief that private landlords receive on their mortgage interest payments, cutting it from 40% or 45% to 20% by April 2020.

Simon Checkley, MD at Private Finance says: "The reduced relief is being phased-in between 2017 and 2020. This move was largely to be expected. Long term buy to let investors might decide to build their portfolio within a ltd company structure although there are financing (fewer lenders) and tax issues to be considered. Inevitably there will be upward pressure on rents as a result of these changes but no less demand amongst buy to let investors as this type of investment continues to look attractive. The losers here will be tenants. Would be home buyers should act now to buy, as with buy to let investment continuing to look attractive, prices will continue to rise."

Lucian Cook, head of Savills UK residential research, comments: "The changes in tax relief for interest payments are likely to slow the growth in the mortgaged buy to let sector, that currently accounts for around 1 in 12 transactions. This is likely to provide some comfort to younger generations of aspiring homeowners, though it could reduce some of the choices for those tenants stuck in the private rented sector.

Want the full article?

subscribe