Many tenants renting privately are likely to be hit with rent hikes following recent changes to the tax regime for landlords, according to new research. A survey of almost 3,000 private sector landlords carried out found that 56% of buy-to-let landlords plan to pass on increased costs to their tenants following the surcharge on stamp duty for second property owners and cap on tax relief for buy-to-let mortgages. The study also revealed that around two-thirds of buy-to-let investors are confident they will be able to achieve an acceptable profit on their existing holdings in the long term. Just over half - 54% - of landlords do have confidence in the future of the sector with 70% anticipating purchasing further properties in the future. Other figures from the survey show 86% of landlords reported they had a good relationship with their tenants and the majority pay rents on time. These are indeed hard times for landlords but confidence seems to remain high. One key factor in this confidence is down to the long term property values which are expected to continue to rise even after the Brexit vote.
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