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Landlords well placed to cope with tax challenges ahead – YouGov

  • 08/01/2016
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Landlords well placed to cope with tax challenges ahead – YouGov
A landlord survey suggests investors are  relatively unfazed by the looming tax changes about to hit the buy-to-let sector.

Doom-mongers have suggested that changes to tax relief on monthly interest payments and the 3% increase in Stamp Duty for landlords and second-home buyers could result in many selling up and exiting the market.

However, the Council of Mortgage Lenders previewed research from YouGov which said they foresee no problems in servicing their mortgage payments, even if interest rates were to rise by 1.5%, which is more than is widely expected.

Landlords identified a range of coping strategies with higher mortgage and tax costs, with 63% saying the rental income would simply cover any higher repayments and 40% suggested they had enough cash to cover additional costs.

Of those surveyed, 11% said they would remortgage to a cheaper deal and 13% said they’d increase the rental charge to tenants.

However, the incoming tax changes are both likely to have a dampening effect on future growth prospects for buy-to-let and the private rented sector as surveys suggest landlords are less likely to buy more properties.

The Council of Mortgage Lenders also pointed out that a cumulative effect was possible, since the impact of income tax changes is ‘likely to be reinforced by the Stamp Duty changes’.

The table below offers a snapshot of the impact of the buy to-let mortgage tax relief changes.



Buy-to-let tax relief illustration tableBuy-to-let tax relief illustration table

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