Rent Rises Are Inevitable After Tax Clampdown On Buy-To-Let

Buy-to-let landlords may have failed in their legal battle against planned government tax relief changes for buy-to-let homes, but the real losers will be private tenants. The rules that permit landlords to offset all of their mortgage interest against tax will, from April 2017, be phased out, restricting the amount of mortgage interest landlords can offset against tax on their property investments. By April 2020 Section 24 will mean higher-rate tax payers will only receive 50% of the relief that they currently get. With many landlords likely to face the prospect of having their profits unjustly wiped out, the majority of landlords will have no option but to recoup their losses through higher rents. Read more on the Home UK website.