HOW MANY LANDLORDS HAVE REALLY GOT TO GRIPS WITH THE LATEST REFORMS?

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

TO BUY OR NOT TO BUY?

To buy or not to buy? That is the question in the midst of economic conditions which are making it tough for many potential borrowers to make life-affirming, property-related commitments.

Although first-time buyers remain the bedrock of the mortgage market – and it’s important that the younger generations remain attracted to homeownership – times are changing. A range of consumer demands need to be fully catered for and shifting social demographics to be considered throughout the lending and private rented sectors. For example, some tenants are opting to rent for longer as it fits better with their current lifestyle. Some tenants simply don’t have a choice. Flexibility can be a key factor for many, and this is even more apparent when you consider the changing face of employment throughout the UK and the effect this is having on how property is being viewed and utilised.

BUY-TO-LET WATCH: CERTAINTY AMID THE UNCERTAINTY

Looking from the inside out, it’s cringe-inducing to think of how the rest of the world is currently viewing the UK’s political plight. Don’t worry, this is not going to be a political or Brexit-related rant. It’s all about perception and maybe, just maybe, the rest of the world isn’t looking at the UK economy with as much disdain as we may initially think, especially when it comes to the housing and buy-to-let markets.

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