Almost half of UK landlords have changed their investment plans as a result of recent tax changes, according to new research by Simple Landlords.
According to the survey, 47% of landlords said Section 24 and Stamp Duty changes affected their investment decisions, with 25% saying it was their biggest concern.
The National Landlords Association has estimated that the initial phase of Section 24 alone has pushed 440,000 lower rate taxpayers, about 22% of the private rental market, into a higher tax bracket. By the time mortgage interest tax relief has been fully phased out, as many as 8.2 million people could be affected in England.
David Cox, chief executive of ARLA Propertymark, said; “Mortgage interest is starting to bite, which is why we saw an increased number of landlords selling up.”
The introduction of Section 24, the 3% Stamp Duty surcharge and the end of the 10% wear and tear tax allowance have all combined to push some landlords out of the rental sector, leading to fears that tenants could be hit with rising rents in 2018
How can we help you?
At Landlord Debt Advisory, we offer bespoke solutions for landlords with problem debts. If you’re a landlord struggling with negative equity, underperforming properties or the impact of recent tax changes such as Section 24, contact Landlord Debt Advisory for an initial free, no obligation consultation.
After we resolved his case, one of our recent clients said; “We contacted Landlord Debt Advisory as a buy to let property purchased in the housing boom left us with negative equity.
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“They dealt directly with the lender and provided us with regular updates on the progress of the case. We got a great result in the end which has alleviated a lot of stress caused by being in negative equity.”