31 Oct

Landlords not deterred by tax relief changes

Landlords not deterred by tax relief changes

The majority of landlords are not deterred by the coming changes in mortgage tax relief, claims a new survey.

Figures show the annual Landlord Voice survey from Simple Landlords show found four in five landlords are not planning to change their business plans, despite the proposed changes to be introduced.

Changes to the tax relief rules mean that by 2020, landlords will no longer be able to deduct the cost of their mortgage interest from their rental income.

However, 70 per cent of the landlords involved in the poll said the changes would not affect their projected investment strategies. A further four per cent they would invest more and 12 per cent felt they would wait to see before making new purchase.

In addition, only nine per cent said the Brexit result would delay them adding new properties to their portfolios, while three per cent felt the decision to leave the European Union would convince them to invest more in buy-to-let properties.

“While some landlords are adopting a cautious wait and see approach and slowing down their investment, others see opportunity in the changes and the vast majority want to keep or grow their property investment,” said Jenny Mayes from Simple Landlords Insurance.

“Landlords are reacting in different ways to political changes, but one thing they have in common is that most are refusing to let negativity deter them. With many, re-evaluating their objectives, changing their strategy, moving to limited company ownership or focusing on capital appreciation they are ultimately continuing to invest,” she added.ADNFCR-1222-ID-801827559-ADNFCR

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