Property news for buy to let landlords
As we head into a new year, we look at the top property news for buy to let landlords. There are some key trends that are likely to affect landlords in 2020. These include things such as tax, legislation, rents, costs and the political climate. Keep reading to find out which issues are expected to heighten in the coming year.
Will rents rise during 2020?
One piece of welcome news for landlords entering the new year is that rents are expected to continue to rise. This is due to the lack of rental properties on the market, so demand will be kept high. As such, tenants will look to pay extra to secure their ideal home. This increase is in line with with the RICS expectation that rents will rise 15% between 2018 and 2023. Although some good property news for tenants is that this increase is unlikely to be in one hit so will be gradual over the 5 year period.
Will the cost of running a rental property rise?
Moving into 2020 is not all good news for landlords. Another piece of property news is increased running costs for buy to let properties and their landlords. This follows the introduction of the Tenant Fees Act in June 2019, which removed the fees that letting agents could charge tenants. So, in turn more letting agents are expected to pass these fees onto landlords in the coming year.
Will landlord taxes increase?
Landlords have seen tax bills increase following a phased reduction in the tax relief they can claim on mortgage interest. Starting in April 2017 it reduced from 100% to 75%. The following year in 2018, the allowable tax relief was reduced from 75% to 50%. It then went on to reduce to 25% in 2019. This jump in tax relief is only looking to get worse for 2020 – where it’s expected the tax relief landlords can claim on mortgage interest will reduce to zero.
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