Many landlords are being forced to change their long-term plans due to recent changes in tax rules, claims new research.
A survey from Simple Landlords discovered 47 per cent of landlords have opted to alter their investment plans because of the potential impact of tax changes. In particular, the loss of tax relief has had a substantial impact, as well as new rules surrounding capital gains tax and stamp duty.
Other reasons for landlords changing their investments included unoccupancy and tenant damage as property owners sought to limit their risk and potential losses.
However, less than ten per cent of landlords plan to reduce their property portfolios following the new tax legislation, with 4.4 per cent of those owning at least two properties planning to increase investment levels, while many landlords do not plan to make any changes at all to their current circumstances.
“We know that landlords are adapting to the changes in the market, and are willing to embrace the challenges and find opportunities to develop more profitable and sustainable portfolios,’ said Alex Huntley, head of operations at Simple Landlords.
“There is no one solution or route, and landlords need to get expert advice tailored to their individual circumstances. But it’s heartening to see the majority of landlords remaining undeterred, and thinking about how to change with the market,” she added.