Landlords around the UK say that the government’s continued assault on buy to let will end up causing serious damage to the market, according to one survey.
Property management firm Orchard and Shipman says that 90% of the 500 landlords they questioned, said that the coming tax hikes will lead to higher rents for tenants.
In addition, one in four landlords are planning to sell their buy to let properties because of the tax changes.
Worryingly, one in five landlords also say they are planning to leave the buy to let sector altogether.
Landlords are passionately committed
The firm’s chief executive, Shane Speirs, said: “Many property investors and landlords are passionately committed and will do what it takes to protect tenants but our research shows landlords are looking at ways of recovering a potential drop in revenue.”
He added: “The buy to let market will, I believe, pull together to continue to provide accommodation for growing tenant demand.”
The survey also reveals that 90% of landlords believe they should be able to deduct their legitimate expenses from tax bills.
This is in response to the government’s plan to limit mortgage interest tax relief on a landlord’s income.
Landlords are also warning they will need to increase rents this year because of growing financial costs that have to be met.
Landlords warned to shape up or ship out
Meanwhile, a group of landlords have been warned to fix their properties or the local authority will close them down.
The council concerned says its move is ‘unprecedented’ and that improvement procedures have now begun against 11 landlords.
The council is hoping to boost living conditions in 30 flats in Glasgow’s Govanhill area after residents made complaints.
When council officers inspected the properties they found slum conditions.
Among the list of complaints were inadequate cooking and washing facilities, no access to running hot water, faulty electrics and unsanitary drainage.
The landlords concerned have now been served notices saying that failure to repair problems will see the property being closed and the landlord being removed from the city’s landlord register.
Cllr George Redmond said: “Having so many active improvement procedures is unprecedented against specific properties in a small area at the same time.
“It’s insightful how neglectful landlords have become in recent years that so much work has to be done.”
The council is now organising a training event to help landlords in March with several smaller meetings for property owners being staged also.
The council is warning that they are prepared to take further action against landlords who shirk responsibility for maintaining their property.
