Landlords start to sell up in advance of Section 24 implementation

An RLA survey of more than 1,000 landlords has revealed that a quarter have either sold or are in the process of selling one of their rental properties as a result of the Government’s plan to change mortgage interest relief and tax them on income rather than profit.

This means many landlords on the basic rate of income tax will find themselves pushed into a higher rate despite their income not having increased.  Tenants will be the losers either by having to move out of their home when a landlord sells up, or face higher rents as landlords try to mitigate the financial impact.  The survey also revealed 68% of landlords said the changes will reduce their profitability by at least 20% and 14% said it will reduce profits by more than 60%.  More than a third said the removal of mortgage interest relief will result in them making a loss.

 

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