Letting agents could be put out of business by Chancellor George Osborne’s plans to reduce landlords’ tax relief, according to a website.
saynotogeorge.co.uk is sponsored by a letting agent and states that with less income, landlords may stop using agents in a bid to make savings.
Letting Agents Could be Affected by Landlord Tax Changes
The website has launched a petition that opposes the plans to cut mortgage interest relief for private landlords.
The petition already has the 10,000 signatures it needs to require a Government response.
The website is the product of Peterborough landlord John McKay and is sponsored by Bee Lettings.
Yesterday afternoon, the petition had 10,892 signatures, meaning that the Government must issue a response. However, a petition needs 100,000 signatures for the Government to consider a Parliamentary debate.
The website states that the proposed changes could hugely affect letting agents: “Initially, letting agents may see the change in tax as a good thing because it will force rents up. In most cases, they earn a fixed percentage of the rents collected so they’ll see an increase in their profit.
“Unfortunately, they may also have to deal with a higher amount of tenant complaints about maintenance. As landlords are going to be hit badly by this tax increase they will have less money to spend on looking after their properties.
“The longer term consequences are likely to put many agents out of business. In the first instance, landlords will perhaps question whether they can afford to continue paying the agent’s fees and may consider taking their properties under their own management.”1
Managing Director of buy-to-let mortgage provider, Mortgages for Business, David Whittaker, is slightly more optimistic.
He says: “Since the summer Budget, our experience is that both mortgage lenders and landlords are still extremely optimistic about the private rented sector in the UK.
“Changes to the tax system will not change the fundamental drivers of growth in the buy-to-let industry. Demand from tenants remains strong and healthy rental yields are providing a powerful incentive for further investment in homes to let.”
Find the petition here: https://petition.parliament.uk/petitions/104880