A rising number of private landlords are looking at plans to increase rents, in order to combat alterations to mortgage interest tax relief.
New research from Cover4LetProperty discovered that 32.5% of landlords are planning to raise rents during the next 12 months. This is in order to keep up with heightened tax liabilities and costs, due to these legislation changes.
Mortgage Interest Tax Relief
In April, alterations to mortgage interest tax relief began to be phased in. The four-year cycle will eventually see landlords only able to deduct 50% of their taxable income generated through their buy-to-let investment.
While rents are set to increase, the research also suggests that most buy-to-let investors are not planning on altering the size of their portfolios. 83% of those asked said they were not looking to either increase or decrease the size of their portfolio in the next year.
Actually, only 14% private investors said they were looking to expand their portfolio within the next 12 months.
Almost one-third of landlords plan on increasing rents
Positively, when landlords were asked how happy they were with their tenants, 93% replied that they were happy. Just 6% said they were 50/50 and 1% said they were unhappy.
Almost half of the respondents also revealed that they are property investors, while the others said that they are accidental landlords, due to features such as inheritance or other circumstances.
Looking to the future, many investors were found to be concerned about further Government legislation changes, alongside increased tax liabilities and ongoing uncertainty surrounding Brexit.