JANUARY 22, 2016 | BY A & S Property
Almost one in five landlords may quit sector because of tax changes
It comes as no surprise but a survey shows an overwhelming proportion of landlords believe the government’s buy to let tax changes will damage the sector.
The research by property management group Orchard & Shipman, questioning 500 landlords earlier this month, shows 90 per cent admitting that the tax hikes will result in higher rents.
A quarter of landlords will be selling some of their properties, and 18 per cent say they are likely to pull out of the market altogether.
The research also reveals that over 90 per cent of landlords believe they should be free to deduct legitimate costs, just like any other business - one of the main grievances about the government’s proposal to limit mortgage interest tax relief for higher-taxed landlords.
More than half of landlords surveyed said they would be raising rents in 2016 to cover the increased financing costs.
“Many landlords and property investors are committed and passionate and will do whatever it takes to protect their interests. Our research shows that the majority of landlords are looking at ways to recover the potential drop in revenue” says Shane Spiers, the firm’s chief executive.