Tax Relief on BTL Mortgage Interest – Will It Last?Make Text Bigger
I curently have one property and am advising my sister who has become an accidental landlord. My mum keeps sticking her oar in to the debate regarding speculation that tax relief on mortgage intertest will be reduced or withdrawn. I can find loads articles related to last years budget but the subject seems to have gone quiet for now.
I’m interested in a range of views from this forum and perhaps to share some speculation on what might happen under governments of different colours going forward.
For what it’s worth It seems to me that:
- removing that tax relief would decimate the BTL market and only benefit a small number of cash rich low/no gearing landlords.
- the rest of us would get out of the market creating huge turmoil in the housing market
- this would not generate a great deal in tax revenue. If I were Osborne I’d rather have 40% of something than 100% of nothing. This is not lkely to be in anyone’s interest.
- I don’t buy the angle that BTL landlords are pushing prices up so that 1st time buyers are priced out in most parts of the country. In most cases we are meeting a short term demand.
- the main reasons for rising house prices are falling household size (thereby increasing the demand for housing even in a stable population), population growth (primarily in London and South East, thus explaining at least part of the growing house price disparity) and an inelastic demand/supply relationship with new build.
I’d really welcome some views from you guys!
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