New tax rules will negatively impact both tenants and the economy
An opinion piece in London’s daily business newspaper, City A.M., focuses on the remarks made by the chancellor in this recent budget statement that buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas home buyers cannot. The article’s author, Alan Ward, argues like many others in the private rented sector, that a landlord’s private property portfolio is a business, and under the changes to be introduced in 2017, this form of business will pay tax on borrowings, whereas other types of business will not. In addition to landlords, tenants are likely to suffer too, with rents increased to cover the financial hit of the new tax rules. Furthermore, ripple effects of the changes may reduce the volume of available rented accommodation and thereby reduce the flexibility of the country’s work force.
Full story available from City A.M.: http://www.cityam.com/220861/