Tax changes will drive 46,000 properties out of private rented sector, says NLA

first_imgHome » News » Housing Market » Tax changes will drive 46,000 properties out of private rented sector, says NLA previous nextHousing MarketTax changes will drive 46,000 properties out of private rented sector, says NLAResearch commissioned from Capital Economics claims 20% of landlords are about to shrink their portfolio size as reduced tax reliefs and extra Stamp Duty undermine landlord confidence.Nigel Lewis11th January 201801,037 Views The number of private rented sector landlords intending to reduce the size of their portfolio is at its highest for ten years, it has been claimed, with 46,000 properties due to be taken out of the rental market.The National Landlords Association (NLA) says 20% of its members plan to shrink the number of properties, largely because the recent tax changes for landlords and the looming tenants’ fees ban are “undermining the viability of many landlords’ businesses”.Research firm Capital Economics were commissioned by the NLA to look into the recent tax changes, which reveal that landlords are set to lose £400m from the changes, which come into full effect in 2020.The research also reveals that ‘moderate earner’ landlords will soon pay “significantly higher taxes” than those who earn comparable incomes through other means.Private rented sectorThe NLA’s CEO Richard Lambert (pictured, left) says the government’s recent tax assault on private landlords is clearly taking its toll and that “the Government needs to look at the impact these policies will have on the PRS”.Landlords have recently had several tax allowances rolled back including an automatic wear and tear allowance and tax relief on mortgage interest payments, and an extra Stamp Duty of 3% levied on buy-to-let property purchases.“More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment,” says Richard.“It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.”To help landlords, the NLA has produced four videos to explain the tax and other changes in the market.Simon Heawood, CEO and Founder of property investment website, says: ““A perfect storm is brewing for landlords looking to property simply as a financial asset.“Policy makers across the political spectrum are acknowledging that home ownership is valuable because it affords permanence and security, and not just for the financial returns which placated constituents of yesteryear.” NLA Richard Lambert National Landlords Association landlords stamp duty January 11, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img read more