Private landlords faced with significantly higher costs, as a result of recent tax changes, are being left with little alternative but to pass on costs to tenants or exit the buy to let market altogether, according to new research from the Association of Residential Letting Agents.
31% of letting agents surveyed saw rents increase for tenants in July, up from 27% in May as a result of landlords struggling to meet rising costs, a year on year increase from 28% in July of last year.
David Cox, ARLA Propertymark chief executive, commented: “Landlords really are stuck between a rock and a hard place.
“All the tax increases they’ve incurred over the last 18 months have meant they either need to sell their properties and exit the market, or increase rent payments to plug the deficit.
“Neither of these outcomes benefit tenants; if they exit the market, supply is even more strained and matched with growing demand, rent prices will increase anyway."
At Landlord Debt Advisory, we are helping clients affected by recent tax changes impacting the buy to let sector, including Section 24 and the hike in Stamp Duty.
One of recent clients from Durham said; "When I read about the buy-to-let tax changes for 2017 I panicked and went to see my accountant. When we did the numbers keeping my houses was a complete waste of time. This tax is totally unfair and squeezes people like me who have a decent day job as well.
"My Accountant recommended Landlord Debt Advisory. They completed a report on my situation with information from me and my Accountant and it was clear selling up was the way forward. The problem was I had no equity. Landlord Debt Advisory negotiated all eight of the sales and a settlement plan for the £57,000 shortfall. I ended up paying back £17,000 which got me out of the nightmare. Very approachable and helpful."
Contact Landlord Debt Advisory on 0161 222 4311 or go online to landlorddebtadvisory.com.