One In Five Landlords Intend To Sell
The Flooring Group has come across a recent survey that shows a remarkable increase in the potential property sale. The number of landlords who are planning to reduce their residential portfolio is hitting a 10-year high. That numbers are announced by the National Landlords Association (NLA).
The NLA’s research, which has over 65,000 members, shows 20% of landlords are considering selling up. The main reason pointed out was the government announcement of a series of tax changes. These include the withdrawal of the mortgage interest relief for the higher and the additional rate taxpayers. Also a 3% surcharge on every additional property purchase and a ban on the upfront letting fees for every tenant.
First introduced on 6 April 2017, those changes to tax relief on finance costs on residential properties will most certainly restrict costs to the basic rate of income tax when they are fully implemented.
Before April 2017, every landlord had the opportunity to deduct the mortgage interest costs from the income as part of the tax return. Members of the NLA insist on the government to strongly consider the impact these policies will have on the private rented sector. More and more people are counting on this sector for a home, and it is vital that landlords not only provide a high standard of accommodation but are also presented with the incentive to do so by the prospects of a reasonable return on investment.
The Association claims these policies are undermining the viability of many landlords’ businesses and eliminating the incentives to invest in residential property for business purposes. The wave of property sale will certainly decrease the property prices and leave many small businesses in the market on the verge of extinction.
Landlords will have to make sure that every property they put out for sale is properly presented and renovated floor to ceiling in order to ensure the best possible selling price. The Flooring Group will continue the supply and provision of quality flooring solutions for every customer with the same attention to details.