Landlords under attack
22nd August 2016
Private landlords seem to have been targeted by the government as a source of tax revenue with the introduction of the new stamp duty charges for buy to let investors and restrictions in relief for mortgage interest for higher rate tax payers being phased in over 4 years from April 2017.
Inevitably this led some buy to let investors considering their position in the market and there was a slowdown in activity in the first quarter of 2016. The Brexit vote has probably also led to some reflection in the market.
Whilst the government signalled its desire for more house building within the planning system implementing plans such as this take time and it is unlikely to reduce demand for private sector rental property to any significant degree in the short term.
Landlords’ original intentions in the short, medium and longer term will undoubtedly be affected by the direct impact of the tax changes but also wider government policy in terms of building policy. Decisions should be made in a measured way with advice from relevant specialists.
Ultimately though, I think investors will factor in the additional costs, and to a degree the uncertainty as to how Brexit will ultimately affect the UK economy, and make decisions about whether the long term returns from buy to let investment properties outperform other investment opportunities and remains their investment of choice.
For advice on the implications on the impact of the tax changes affecting private landlords, please contact me on firstname.lastname@example.org or 01273 701200
Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.