Firstly, the three percent increase in stamp duty tax on buy-to-let/second properties in April will have a big impact. It will cost more to purchase a BTL property which could make it harder for new landlords to enter BTL market and for existing landlords to add to their stock. Then there is the abolition of the wear and tear allowance and the removal of loan interest relief.
Wear and tear allowance can be claimed to cover the cost of replacing furnishings and this is calculated at 10% of net rents. From April however, landlords will only be able to claim on the actual amount spent, not the 10% as a standard claim. April 2017 sees the end of deductions on mortgage loan interest rates, so you can understand what the potential losses could be for landlords.
The changes will turn up the heat on landlords across the UK so it is vital that they use respected property agents that are informed and up-to-date with key legislation and realise how they impact their assets not just now, but in the long-term.
My role as a letting agent is even more pivotal than before, we need to guide, advice and support landlords as part of our service and continually provide quality and transparent advice.
As an agent I know first hand, how crucial our role is to ensure landlords are advised and supported appropriately. We will always contact our landlords inform them of any new law or change in law, how this will affect them and the steps they should take to protect their assets. As an educated, responsible agent, we can make a difference and landlords should not accept anything less when it comes to the care of their investments.
If you have question on the above, please do not hesitate to contact me on 01252 514000 or firstname.lastname@example.org.