Budget 2015: Property agents slam tax relief restriction for landlords

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Chancellor George Osborne announced in the budget that relief will be cut to the basic rate of income tax – currently 20%.

It will hit the ability of buy-to-let landlords to claim repayments back against their income, which has benefited larger landlords.

However some opponents believe it will deter investors from delivering much-needed rented homes.

Nicholas Leeming, chairman of estate agent group Jackson-Stops & Staff, said: “This a major blow to a sector that is heavily reliant on private investors and who provide a crucial supply of property to the private rental sector.”

 

Ed Heaton, founder of Heaton & Partners, said: “The changes to mortgage tax relief for buy-to-let landlords will particularly hit those owning properties in prime central London, where the sums involved are very high and the yields extremely low.”

He added: “If one accepts the Bank of England’s arguments, then the proposed changes are probably a proportional response to the issue.

 

“It might even help release a little more prime stock in central London to the market in the next year or so, although this might be wishful thinking.”

The chancellor said that 15% of new mortgages are now buy-to-let.

Osborne also unveiled plans to increase the amount of relief for home owners renting out a room in their house to £7,500 from next year.

Source Article from http://www.standard.co.uk/business/business-news/budget-2015-property-agents-slam-tax-relief-restriction-for-landlords-10375377.html

July 9, 2015 |
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