Recent YouGov Reports survey data suggests that mortgaged buy-to-let landlords are fairly well informed of new tax and regulatory measures and, in many cases, are finding ways to weather the impact.
The YouGov survey follows researcg late last year by the Council of Mortgage Lenders (CML) into private sector landlords. This found that landlords were taking a long-term view of their property investments, although the researchers found that those at the most professional-end of the spectrum - those with large, leveraged portfolios - were likely to be most affected by the government’s tax changes.
YouGov’s survey of 925 mortgaged buy-to-let landlords was conducted during December 2016 and January 2017, and is the largest and most recently polled sample of such a group. In this article, we explore how the majority of them are planning to handle the impact of reduced mortgage interest tax relief, new mortgage regulations from the Prudential Regulation Authority (PRA), and the current extra charge of 3% stamp duty levied on landlords.
Awareness of mortgage interest tax relief reduction
In 2015, we heard the announcement that the ability to deduct mortgage interest would be gradually phased down for landlords – meaning that, by 2020, only 20% of any landlord’s mortgage interest would be tax-deductible.