NRLA call for tax regime change as landlords face higher mortgage costs

NRLA call for tax regime change as landlords face higher mortgage costs

10:50 AM, 15th February 2023, About A year ago 5

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A third of private landlords with a buy-to-let mortgage face the prospect of higher costs this year, according to the National Residential Landlords Association (NRLA). 

The Bank of England has warned that by the end of the year, monthly repayments for buy-to-let landlords are expected to rise by £175. A fifth of landlords with such a mortgage will face increases of over £300.

The NRLA research found that 63% of landlords have a buy-to-let mortgage on at least one property. Of this group, 29% plan to re-mortgage at least one property over the course of the next year.

‘30% of landlords plan to cut the size of their portfolio in 2023’

According to the Bank of England the mismatch between the demand and supply of rented housing, is in part a consequence of higher borrowing costs.

The data from the NRLA found that 65% of landlords in England and Wales confirm that demand for privately rented housing increased during the final quarter of 2022. This was up from 56% who reported increased demand during the fourth quarter of 2021.

Despite the strong demand, 30% of landlords said they plan to cut the size of their portfolio in 2023, the highest level of planned disinvestment seen in more than six years. Only 9% said they plan to increase the size of their portfolio over the next 12 months.

‘Landlords with small portfolios are currently critical to the provision of private rented accommodation’

The NRLA and the cross-party Levelling Up, Housing and Communities Select Committee are calling on the government to review the impact of recent tax rises on the sector to boost the supply of properties to rent. The Committee said: “landlords with small portfolios are currently critical to the provision of private rented accommodation.”  It argues that a tax review of this kind should “make it more financially attractive to smaller landlords.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “It is time the Government stepped in and accepted calls by the NRLA, the Select Committee and others for tax measures to encourage the supply of homes to rent. Without this, renters face a bleak future as finding somewhere to live becomes increasingly harder.”

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Sean Barber

20:04 PM, 15th February 2023, About A year ago

By the time the Government wakes up it will be too late. It was obvious this would happen when the attack on Landlords started. If anything is done to encourage landlords back, it will take years for it to see any effect because who will trust them that when things improve they won’t do it again. I have 6 Rentals all on fixed mortgages. I never increase the rent but when the fixed deals come to an end if things have not improved I will also be exiting.

Dylan Morris

6:07 AM, 16th February 2023, About A year ago

I have seven rental properties and will be cutting my small portfolio down to just three due to Clause 24. This current year looks like I will be paying tax on a loss !! It’s a blxxxdy disgrace. Hopefully the three properties I will have left will be mortgage free so long as property values stay roughly where they are.

Chris Novice Shark Bait

9:16 AM, 16th February 2023, About A year ago

2 properties up for sale, one by auction another traditional. Echo. Incorporation would have wiped out £120K of carry Forward ITR faster than section 24 have managed to erode it by stealth. Disheartened and do not trust what the government may do next. I prefer to sleep at night and at my age welcomes the very thought. They seem intent on exerting control to an extent that flies in the face of reality. It will become the tenant's loss and if the penny drops too late then, we told them so.


11:01 AM, 17th February 2023, About A year ago

2 houses under offer, another one on the market and getting the fourth ready for sale, 4 already sold last year.

I’m loosing £1000 a month at the moment cos I never increased my rents - my tenants are shocked that I am now, they just don’t grasp the situation and the government are going to force me to make them homeless.

For me it will be too little too late, after these it will be another 15 families trying to find another home - I’m heartbroken, I love my tenants - I’m godmother to 3.

Everything is mortgaged up to the hilt, I started with nothing as this was the only way I could make an income due to ill health.

I never wanted to drain the country by taking benefits but that may have to be an option.

I’m a proud person, I’ve always made my own way in life!

I’m devastated!

Dylan Morris

12:00 PM, 17th February 2023, About A year ago

Reply to the comment left by M H at 17/02/2023 - 11:01
So sorry to hear of your situation I really feel for you. I’ve hardly increased me rents as well just trying to look after my tenants. Good luck with selling your portfolio.

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