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Landlords have Better Understanding of the Tax Relief Changes as they Take Effect
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Landlords have a better understanding of the Government’s tax relief changes as they take effect today (Thursday 6th April 2017), according to the latest PRS Trends Report for Q1 2017 from Paragon Mortgages.
Landlords have Better Understanding of the Tax Relief Changes as they Take Effect
The study found that there is an increased understanding of the implications of the tax relief changes amongst landlords.
The changes will be introduced gradually from today until 6th April 2020.
78% of landlords reported an understanding of the personal implications of the tax relief changes, up from 71% in Q4 2016.
This increase in understanding is paired with a smaller percentage of landlords saying that they do not understand the implications (7% from 11%), or they require more information (13% from 18%), and is a further indication that landlords are preparing for the impact of the changes.
Reassuringly, landlord optimism was stable in Q1 2017, with the overall average rating of prospects for the private rental sector over the next 12 months now at 6.7. This maintains a modest upward trend since Q1 2016, and suggests that confidence is returning amongst landlords following a turbulent 18 months, as they gain greater understanding of the pressures they are likely to face and develop strategies to mitigate at least some of the impact.
This guide from the Government explains exactly how the tax relief changes will affect you: /government-guide-tax-relief-changes-residential-landlords/
John Heron, the Managing Director of Paragon Mortgages, comments: “It’s encouraging to see that the private rental sector has not been negatively impacted to the degree that had been widely predicted, despite some turbulence over the last couple of years. This increase in understanding, combined with effective financial planning, may be the key drivers behind a steadier picture in terms of overall optimism amongst landlords.
“However, we remain cautious, as landlords will not be fully impacted for some years yet and, whilst we have been able to track a modest recovery in confidence since 2015, the sector is still some way off its peak; the private rental sector is finely balanced and will remain so for some time.”
