View more on these topics

Number of single property landlords affected by tax changes doubled: NLA

The National Landlords Association has reported that the number of single property landlords who anticipate that they will move into a higher tax bracket as a result of recent changes has almost doubled since 2016.

The NLA says that 16 per cent of landlords with a single property now say the changes will push them into a higher income tax bracket – a rise of 7 per cent from Q4 2016.

Individuals who only let out a single property are by far the most prevalent type of landlord, the association says, representing approximately 62 per cent of the UK’s landlord population.

The NLA says that any single property landlords forced up a tax bracket would need to increase the rent by more than 11 per cent in order to continue to make a steady yield from the property, which equates to as much as £116 per calendar month more for the average rental property.

NLA chief executive Richard Lambert says: “Single property landlords are responsible for providing a huge proportion of the UK’s private rented homes, and these findings show that, slowly, more and more are waking up to the fact their tax bills could be significantly higher in the coming years.

“A fifth (21 per cent) of landlords with just one property do not make a profit, and over the next few years those bumped up a tax bracket will find that their ability to continue to provide good quality housing will be seriously affected.

“More and more families and young couples are making their home in the private rented sector because they cannot either access social housing or afford to buy their own home. Affected landlords will have the choice of either increasing rents or selling up – so either way it’s the people they currently home who look likely to suffer the most as a result of this damaging tax change”.

Recommended

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

Mortgage lending up 24% in March but down on 2016: CML

Home buyers borrowed £11.2bn in March, up 24 per cent on February but down 19 per cent year-on-year. This came to 61,700 loans, up 27 per cent on February but down 12 per cent on March 2016. First-time buyers borrowed £4.9bn in the period, up 29 per cent on February and 9 per cent on […]

Money
3

Brokers irked by Clydesdale offering clients discount to go direct

Brokers say they are being cut out of the loop by Clydesdale Bank writing to customers before their mortgage renewal and offering an arrangement fee discount if they go direct. The lender is writing to fixed rate clients offering the deal up to three months before their fixed rate mortgage term ends, Mortgage Strategy can […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.

Newsletter

News and expert analysis straight to your inbox

Sign up