7 Dec

Rents may rise following govt changes

Rents may rise following govt changes

Private rents could increase as landlords adapt to recent government changes, according to a new report.

Research from Kent Reliance shows landlords are now more positive despite changes to stamp duty meaning buy-to-let investors have to pay additional three per cent and increased immigration checks on potential tenants.

Landlords’ confidence is at its highest for 12 months, with 54 per cent of investors confident about their future plans.

However, there is likely to be an impact on rents, with the average rent increasing to a high of £881 month and it is expected this trend could continue as landlords face more regulations in 2017.

“The stamp duty levy clearly took its toll on the market, and combined with the forthcoming tax changes, landlords have felt at the mercy of a political agenda. But confidence is returning as landlords take action to limit the damage to their finances,” said Andy Golding, chief executive of OneSavings Bank.

He added: “There is still more to come for the buy to let sector next year. The PRA’s new underwriting standards are due to be implemented, the tax changes begin to take effect, and there is yet more potential intervention in the form of the Bank of England Financial Policy Committee’s new powers.”ADNFCR-1222-ID-801829444-ADNFCR

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