Landlords confident despite political changes, survey finds

Rental-Contract-Pen-Paperwork-Mortgage-700.jpg

The majority of landlord respondents to a survey believe they will be unaffected by Brexit and intend to carry on business as usual.

The second annual Landlord Voice survey conducted by Simple Landlords Insurance found just 9 per cent said the Brexit vote meant they would postpone expanding their portfolio, while 3 per cent said they were likely to increase investments following the vote.

By 2020, landlords will no longer be allowed to deduct the cost of their mortgage interest from their rental income when calculating rent, meaning tax is paid on turnover rather than profit, a change coming in gradually from April 2017.

However, the survey found 70 per cent of those polled said the reduction of tax relief on buy-to-let mortgage payments would not affect their plans. A further 12 per cent said the changes meant they planned to wait before adding new properties to their portfolio, while 8 per cent said they would now sell one or more properties.

A fifth of landlords said they expect to increase their rents in the next year.

Asked what they were worried about, 48 per cent chose government legislation, tied with periods of unoccupancy, followed by 39 per cent who are worried about tax changes.

Simple Landlords Insurance spokesperson Jenny Mayes says: “While some landlords are adopting a cautious wait and see approach and slowing down their investment, others see opportunity in the changes and the vast majority want to keep or grow their property investment.

“Landlords are reacting in different ways to political changes, but one thing they have in common is that most are refusing to let negativity deter them. With many, reevaluating their objectives, changing their strategy, moving to limited company ownership or focusing on capital appreciation they are ultimately continuing to invest.”