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Tax changes in buy-to-let sector will remove ‘dinner party’ landlords
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Alterations to tax measures, including the increased stamp duty and changes to mortgage interest tax relief, will lead to more professional landlords in the sector, according to a leading industry peer.
Adrian Moloney, of One Savings Bank, expressed his views at the Financial Services Expo (FSE) London exhibition. Moloney was one of an industry panel debating a wide range of issues.
Changing nature
When asked for his opinion of the changing nature of buy-to-let and the impact on landlords, Moloney said, ‘we are seeing a move towards a more professional sector and we’re going to see less of the dinner party landlord. This is very much an era of professionalism and I don’t think that’s necessarily a bad thing for the private rental sector.’[1]
However, Moloney was not as keen to welcome alterations to mortgage interest tax relief- to be introduced from April next year. Moloney said, ‘my hope is that the Chancellor will change the tax rules for buy-to-let landlords in the Autumn Statement but that’s probably not going to happen.’[1]
Mr Gary Salter, of Nationwide Building Society, believes, ‘we will see a change. This is the direction of travel we are going in-we moved to a 145% rental calculation earlier this year. Lenders will need to be much more prudent.’[1]
Tax changes in buy-to-let sector will rid ‘dinner party’ landlords
Actions
The panel was also asked what action they would like to see Chancellor Philip Hammond take in his first Autumn Statement.
John Coffield, of Paradigm Mortgage Services, has proposed changes to stamp duty land tax, in London and the South East primarily. He argues that estate agents are not welcoming enough properties to market, as people are deterred by the costs of moving.
Mr Moloney agreed that stamp duty in these regions could be changed, stating, ‘I would like to see some help for home movers,’ adding, ‘perhaps we could relax stamp duty in that area.’[1]
[1] http://www.propertyreporter.co.uk/landlords/will-changes-in-the-prs-signal-the-end-of-dinner-party-landlords.html
