Experts at Whitley Stimpson, one of the largest independent accountancy practices in the area, with offices in Banbury, Bicester, High Wycombe and Witney, say it is important that everyone is aware of these rising taxes as it effects both landlords and tenants.
Val Buzzard, a director at the firm, said: “Tax changes have made buy-to-let properties less lucrative for landlords. They can no longer claim all their mortgage interest costs against their rental income for tax purposes and they are being hit by the extra 3% on stamp duty. This is pushing some small investors to sell up, and hence taking properties out of the rental market.”
Val, who is based at Whitley Stimpson’s Banbury office, advises not only landlords but also collaborates with other local professionals like Finders Keepers letting agents, informing them about issues around landlords coping with changes in buy-to-let tax relief.
“This knock-on effect means that tenants face higher rents”, says Val.
“Surveyors are warning that these extra taxes and restrictions on landlords are pushing property owners to sell up, therefore reducing the supply of properties on the rental market.”
RICS estimates the result will be a rise in rents of around 2% this year, and 15% by 2023.
Renters, buyers and landlords are also likely to feel additional pressure on their finances thanks to the recent interest rate rise from the Bank of England. While the hike leaves the base rate at 0.75% it is still likely to make borrowing costlier at a time of tight margins for landlords, and prospective buyers.
To landlords, the message is make sure you are aware of all the changes and if in any doubt contact the experts at Whitley Stimpson for help and advice.
Whitley Stimpson has a team of specialists who advise on all tax matters for both businesses and individuals. For further details, please contact Val Buzzard, on 01295 270200 or firstname.lastname@example.org