Tenants could be the big losers from buy-to-let tax changes
09-19-2015
Tenants could end up bearing the brunt of new mortgage tax relief cuts as landlords simply hike rents to fund the shortfall.
Starting in April 2017, the Government will gradually phase out mortgage interest tax relief for buy-to-let investors over four years in a move that could add hundreds of pounds to landlords' monthly bills.
A new poll of almost 500 landlords has found that more that four in 10 (44%) will consider passing these extra costs on to their tenants.
"This increase in tax will drive landlords to recoup their losses, and what better way of doing that other than by increasing the rent," said Karim Goudiaby, chief executive of property site EasyRoommate, which carried out the poll.If that prediction proves true, it would be a massive blow to tenants who are already battling record rents.
Data from estate agents Your Move and Reeds Rains found that average rents in England and Wales had crept above £800 for the first time this summer