Thursday, 16 July 2015


I have received a number of calls from landlords since the budget, asking me how I felt the Chancellor’s announcement during his budget speech, in relation to tax relief for buy to let landlords, was going to affect the Warrington property market?

Now this is a big question and I will start by saying that despite the odd rumour in the associated industry press, the speed of the announcement has taken the industry by surprise. In brief the Chancellor is going to phase in changes to the tax relief rules and regulations currently enjoyed by buy to let investors, in order to “Level the playing field” between buy to let investors and ordinary house buyers.

As we stand landlords who are higher rate taxpayers can claim tax relief on their monthly interest payments at the top level of tax they pay, meaning landlords can claim as much as 45%. So, at the moment interest payments of £100,00 only cost landlords paying tax at the highest rate, £50,00 however t from 2020, when tax relief will have been reduced to 20%, it will cost £80:00.

These changes are due to be introduced over the next 4 years from April 2017, so landlords have plenty of time to meet with their accountants and find the strategy to mitigate against these changes. In reality, this is a battle between the tax man and the accountants, with some property experts advising that landlords investing through limited companies should be able to avoid the impact of the cut in tax breaks.

Over the coming weeks you will read many quotes from industry experts, but I would remind you of two things; firstly, no professional associated with the industry, including myself,  is in possession of a crystal ball and secondly, governments have a poor record of controlling markets, which are driven by many forces, sentiment and confidence being just two them.

My gut feel is that the socio economic drivers in the private rental market will not change and there will still be a need for good quality private rental market housing stock, as a high proportion of some profiles of tenants are tenants by choice.  Will it cause prices to fluctuate? Well we know that house prices fluctuate, they have been doing this since the 1950s, but over the long term housing has proven to be a good investment.

It is also important to remember that at the moment, investors and landlords with cash to invest are not spoilt for choice and this, in my opinion, will still leave the right profile of property as an attractive investment option for landlords and the first time investor.

If you enjoy the blog and/or would like to discuss any aspect of investing in, or letting property, please feel free to contact me on 01925 235 338 or at, when I will be more than happy to help. Alternatively, please feel free to pop in and see me at our offices at 
6 Bankside, Crosfield st, Warrington .

If you enjoy reading my articles please visit the links below to view back dated issues. 

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