A new research presents opinion of the majority of landlords in the UK, and according to the landlords’ opinion that the Government’s tax amendment last year will bring negative impact in the buy to let sector.
The tax changes will halt investment, believed by 86% landlords in the UK. Some 90% are of the opinion that the tax changes will also tend to increase rents. And, eventually the changes will result into shortages of rental homes.
The statistics collected from real estate Company Orchard and Shipman Group shows that a quarter of landlords will sell out some or all of their properties. Only 18% of landlords have decided to pull out of the market all together.
The research further reveals that more than 90% of landlords think they should be entitled to deduct legal cost like any other business. More than 50% of landlords believe that they have planned to raise rents in this year in order to adjust other costs.
Shane Spiers, the Chief Executive Officer of Orchard and Shipman Company, believes that the tax criteria changed by the government will surely hit revenue badly. The demand of rental properties will increase due to shortage of houses and rising property costs.
The CEO of Orchard Shipman Company further added that though the landlords will bear some negative impact of the tax amendments but overall tenants will have to bear changes of the tax. In this condition, landlords will increase rents to maintain their revenue generation.
Mr. Spiers mentioned a very valid point that landlords and property investors are dedicated and enthusiastic and they can take other steps to cover their investment and earnings and this behavior can seriously hit the Government’s intentions regarding buy to let market.
Mr. Spiers further threw light over the research and statistics that majority of landlords are working on different options for revenue generation. His company is also suggesting the landlords to work on the available options at the moment. Mr. Spiers firmly believes that buy to let market will continue to provide its services to overcome current rental market demand.