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Don’t get rid of Tax Relief for Landlords

from "UK Landlord" magazine, November 2007

Over half of buy-to-let investors plan to increase their portfolios in the next 12 months as long as mortgage interest continues to be classified as a business expense, according to the latest quarterly review and index published by the Association of Residential Letting Agents (ARLA).

The review, which is based on the findings of the ARLA Survey of Residential Investment Landlords, reported that if this legislation regarding buy-to-let mortgages were to change, 28 per cent of landlords would sell some property, 10 per cent would leave the private-rented sector altogether and 42 per cent were uncertain as to what they would do.

ARLA Operations Manager Ian Potter commented, "With the institutions less interested in the Private Rented Sector and private equity companies not filling the gap, the loss of any private individual investors would seriously affect the rental market and severely curtail choice in housing." He also noted the important role that private buy-to-let investors have played in refinancing the private-rented sector, attributing them with having "restored social acceptability to renting." The review reported a continuing high demand for rented residential properties, particularly in prime central London and the South East. 65 per cent of ARLA members managing properties in London said that tenant demand outstripped supply; likewise, the proportion of those reporting more tenants than properties in the South East has increased from 52 to 57 per cent. In the rest of the UK, the figure is 44 per cent, up from 35 per cent in Quarter 2.

 

Rugg Review:
The Independent Review of the Private Rented Sector has been published. See how it affects you.

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