I recently noticed a headline ‘UK landlords failing to keep pace with PRS reforms’, which made me wonder just how many landlords are still either ignoring, or are unaware of, legislative and policy reforms throughout the UK rental market.
Whilst reflecting on this, it seems apt to reaffirm some of these changes.
Mortgage interest tax relief
Mortgage interest tax relief will continue to be phased out. Landlords are no longer able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs. For the 2019–20 tax year, landlords will only be able to deduct 25 per cent of their mortgage interest. And from April 2020, they won’t be able to deduct any.
Lettings fee ban