Tax Change Hits Landlord Confidence

Landlords’ confidence in the UK has fallen as they face the prospect of higher tax costs and weakening house prices, although rents are climbing, pushing up yields, the latest research shows. Just 41% of landlords are confident about the prospects for their portfolios, following the recent taxation and regulatory changes, according to the sixth edition of Kent Reliance’s Buy to Let Britain survey report. This represents a fall from 44% in the previous quarter, and compares to 67% seen three years ago. Political and economic uncertainty will only add to landlords’ concerns, the report points out. Read more on the Property Wire website.

Tax Rises And Tougher Regulation Kick In For Private Rented Sector

New conditions to crackdown on rogue landlords come in alongside tax rises critics claim will increase rents and stifle investment in the private rental sector. Housing minister Gavin Barwell says the new regulatory powers will give councils an edge over landlords flouting the law. Councils can now impose fines of up to £30,000 as an alternative to prosecution for a range of housing offences and retain all of the income to make sure it is used for private sector housing enforcement purposes. Rent Repayment Orders, which can be issued to penalise landlords managing or letting unlicensed properties, have also been extended. Read more on 24housing.

440,000 Landlords Forced Up Tax Bracket From April 2017

More than four hundred-thousand landlords (22 per cent) who pay the basic rate of tax will be forced into a higher tax bracket from April next year (2017) as planned changes to landlord taxation come in to force. The changes mean landlords will no longer be able to deduct mortgage interest payments or any other finance-related costs from their turnover before declaring their taxable income. However, while 440,000 basic-rate tax payers will be forced into a higher bracket, all landlords could be at risk of seeing their tax liability increase regardless of their existing rate of tax. Read more on the NLA website.

Most Want Government to Tackle Causes Of Housing Benefit Bill

The majority of the British public believe the government should be tackling the root causes of the country’s high housing benefit bill. A survey by the Fabian Society asked people if they agreed with the statement: "The size of the housing benefit bill has risen because there are more people claiming due to unemployment, low wages and rents rising quickly. Instead of planning further cuts, the government should be focusing on solving these underlying problems. The government should do this even if it took a long time and meant tax rises or spending cuts elsewhere."  Some 66% of respondents said they agreed with the statement, while 12% disagreed.  However the research also found that 67% agreed that too much is spent on subsidising housing costs for immigrants and those with too many children, and 58% agreed that housing benefit encourages dependence on the state.  Read more on 24dash.