Buy-to-let changes will hit tenants hardest - new data
Friday 05 October 2018
The impact of the latest buy-to-let rule changes will mean nearly four in every ten landlords may increase the rent they charge, new research shows.
Investment consultancy Property Partner's data shows that 37 per cent of landlords may have to increase rents to compensate for measures such as higher stamp duty, the removal of wear and tear allowance, and the phasing out of mortgage interest tax relief on investment properties.
And over a third of landlords - 38 per cent - say they would also consider increasing rents to compensate for higher interest rates.
Following the first rate rise above 0.5 per cent in a decade seen in August, renters may feel the pinch as costs are passed on.
Mark Weedon, head of research at Property Partner, said: “The government wants to protect renters and is increasingly recognising the crucial role of the rental sector within the wider housing market.
“It is ironic then that the government’s own initiatives are forcing landlords to pass on costs to tenants, impacting those who choose to rent, and making it harder for those with ownership ambitions to save for a hefty deposit."