Thursday, 13 April 2017

Landlord tax rises will see rents increase

Landlord and tenants set to suffer under new tax.

Tax rises for landlords being introduced today could see rents rise by 30% and stifle investment in properties to let, making it harder for renters to find suitable homes.
The warnings come from the country’s leading landlord body as the Government begins to restrict mortgage interest relief for landlords and tax their turnover rather than their profit.

Research by the Residential Landlords Association (RLA) has shown that two-thirds of member landlords feel they will need to increase rents to cope with the new tax burden.
The results also show that 58 per cent of members plan on cutting back investment in property.
Independent experts have argued that landlords will need to increase rents between 20 per cent and 30 per cent to cope with the extra cost of the tax hikes.

Ministers have argued that the move levels the playing field between landlords and homeowners, but the respected Institute for Fiscal Studies has said that the tax system: “is not, and was not, even before the recent changes, more generous to people buying to let.”

 RLA Chairman, Alan Ward said: “Today’s tax increases contradict everything the Government has said about needing a larger rented sector to give tenants more choice and more affordable housing.
“It is tenants who will be hit hardest by these punitive tax increases. Aside from likely paying more in rent, in many places they will face a growing shortage of affordable places to rent.
“We call on Ministers to undertake a major review of the impact of this policy and if all the predictions about its impact are right, to abolish the changes in the autumn budget.”


  1. Why the tax increase for Landlords? Something needs to be done about this. At the end, the Landlords won't feel anything but tenants, since the Landlords would be increasing their rents. Tenants will be heavily affected. The Government should address the issue properly. Thanks for the update.

  2. First assist you're doing a great job. Thanks for always keeping us abreast with the current information about the property market.

  3. Hi Mitchelle, You're actually right. The landlords aren't affected but the tenants, it's not right at all. If this continues the average citizen may find it difficult to pay for their rents in the future.

  4. Hi Rachael, That's very true! I think the average citizens are already feeling it. Thanks for sharing in my view. Cheers!

  5. Terrible situation for we tenants. The Government should address and possibly reverse the tax changes please. Thanks for the update.