Almost 50% of Landlords don’t know what Tax Changes will Cost them

Almost half of all private landlords in the UK don’t know what the Government’s changes to mortgage interest tax relief will cost them between now and 2020, according to research by online letting agent Upad.

Almost 50% of Landlords don't know what Tax Changes will Cost them

Almost 50% of Landlords don’t know what Tax Changes will Cost them

Although 80% of landlords questioned stated that the changes would eat into their rental yields, many were unsure what action they would take to maintain a consistent yield and annual profit from their property portfolios.

With 70% of landlords owning more than two properties and lending to buy-to-let investors already showing signs of slowing down, it is clear that the industry is entering a period of significant change.

The only certainty, as always seems to be the case when Government policy targets landlords, is that, ultimately, it will be the UK’s nine-million tenants who are hit hardest by the changes, with 21% of landlords already admitting that they will put their rent up to protect their yields and maintain profits.

Worryingly, Upad also found:

  • 47% of landlords don’t know how much the mortgage interest tax relief changes will affect them between now and 2020.
  • 20% admitted to not knowing what the changes mean.
  • 80% said the changes would eat into their rental yields.
  • 21% admitted that they would be putting up their rent to protect their profits.
  • 32% didn’t know what action they’d take.

Our guide explains what the mortgage interest tax relief changes are and how you will be affected:

The Founder of Upad, James Davis, comments: “Although over half of all landlords don’t have debt in their portfolios, and therefore won’t be effected by mortgage interest relief changes, 21% of all landlords at least will be increasing rents to cover their higher cost base.

“This is understandable and forecasted, as the cost of fuel at the pump goes up as the price of oil increases, but yet again it will be tenants who lose out, paying an ever increasing proportion of their net pay on rent.

“Whilst the Government continues to see landlords as a political football, it’s the nine-million tenants in the UK who will actually be hardest hit.”

Landlords, if you are forced to put your rents up to cover any changes to your income, remember to protect your pocket with our ultimate peace of mind cover – Rent Guarantee Insurance.

This essential cover will protect your rental income from tenant rent default. Get instant online quotes and cover here:

©2020 Just Landlords