More than half of landlords now likely to raise rents to meet costs
Over the last year or so, landlords have faced the prospect of increased costs, such as a higher bill for Stamp Duty when investing in property, and from April next year a change in taxation of their income, which will mean a reduction in the bottom line.
And according to the latest report released this week by the Residential Landlords Association (RLA), a growing number of landlords are looking to offset these additional costs by increasing what they charge tenants to live in their properties.
It said that in the coming 12 months, as many as 56 per cent of respondents said they will be looking to increase what they charge tenants as they look for ways to protect their returns and ensure that they are not losing out financially as a result of changes in taxation.
And when it comes to the policies that have forced prices higher in this way, many landlords are worried that the recent changes are not going to be the last that they face. As many as 70 per cent said they believe the government will change more in the coming years, which could potentially punish landlords further.
RLA policy director David Smith said: “These results show how perverse recent tax changes have been. By implementing policy that will increase rents and choke off the supply of homes to rent, the government is making it more difficult for tenants to save for a home of their own.”
He went on to say that the upcoming autumn Budget should now be seen as the government’s opportunity to put a stop to landlords being unfairly hit, and to make sure that the rental market is better appreciated in terms of what it offers tenants.