Paragon report shows landlord’s no. 1 priority is reversal of Section 24Make Text Bigger
Paragon Mortgages’ Private Rental Sector (PRS) Trends Report for Q2 2017 was based on interviews with 201 experienced residential landlords.
The landlords surveyed were asked to list in order of their priorities the steps they would most like the government to take next to help with their rental businesses.
Number 1 priority was the reversal of Section 24 mortgage interest relief reductions for individual landlords announced in the Summer Budget 2015 by the them Chancellor George Osborne and now being phased in from this tax year.
Number 2 was a request for NO more changes and a period of stability.
Number 3 was for a government exemption of SDLT and CGT for landlords incorporating their portfolios into limited companies. Of the landlords surveyed 11% had already taken action to incorporate and mitigate the mortgage interest relief reductions.
The report also showed that:
- 20% of landlords were to increase their rent
- 20% were looking to sell property or buy no more for rent
- 18% were looking to decrease their mortgage exposure
- 88% up from 71% six months ago now say they understand their tax implications from Section 24
John Heron, MD for Paragon Mortgages said, ” Having taken active steps in preparing for a difficult period of transition as the tax relief changes continue to be phased in, landlords are now facing up to the challenge ahead.
Higher tax charges for landlords have combined with a general increase in uncertainty to drive confidence levels down. However, whilst there are signs of lower demand it would appear that property yields are being maintained and that void periods are close to historic lows. This would suggest that despite the negativity around the market that the PRS continues to perform well.”
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