Rent Rises Forecast After Tax-Relief Cut For Landlords

Britain’s two million buy-to-let landlords were left reeling after the chancellor slashed tax relief for property investors, provoking warnings of a potential mass sell-off of homes - or widespread rises in rents. From April 2017 landlords will no longer be able to claim tax relief worth 40% or 45% of the interest payments on their buy-to-let mortgages. Instead, the maximum tax relief will be set at 20%, although the change will be introduced over a four-year period. Property investors will also lose the right to automatically claim 10% of the rent against wear-and-tear costs. From April 2016, landlords will only be able to deduct costs they actually incur. But homeowners will be able to receive as much as £7,500 in rent from lodgers without having to pay tax, compared with the current ‘rent a room’ limit of £4,250. Read more on the Guardian website.