Tenants warned of potential rent rises
David Miles, former independent member of the Bank of England’s Monetary Policy Committee has said that Tenants could potentially face a 20-30% increase in rent because of tax rises affecting Landlords.
The Professor of Financial Economics, wants the current 3% stamp duty surcharge and the pending phased reduction of landlord’s mortgage interest tax relief to be abandoned.
Responding to the claim made by the previous Chancellor that the tax changes would open up the market to first time buyers, Miles says that “aspiring first-time buyers are hardly helped by squeezing the supply of rental property and driving rents up.”
The Residential Landlords Association have also claimed that most Landlords will be negatively impacted by the tax changes. Instead they want the government to use the extra revenue from the stamp duty levy to stop the implementation of the mortgage interest changes.
Full article available on LettingAgentTODAY: https://www.lettingagenttoday.co.uk/breaking-news/2017/2/tenants-face-rent-rises-of-30-warns-ex-bank-of-england-chief