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More landlords understand mortgage interest tax relief changes
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The most recent report from Paragon Mortgages reveals that more landlords are beginning to come to terms with the implications of the Government’s changes to tax relief.
A reduction in buy-to-let mortgage interest tax relief began being phased in from last Thursday (April 6th). Paragon’s survey revealed that 78% of landlords recorded a good understanding of the personal implications of the changes. This was a rise from the 71% seen in the final quarter of 2016.
Understanding
This rise in understanding was coupled with a smaller percentage of landlords noting that they not understand the changes (7%). In addition, those saying they required more information fell from 18% to 13%.
Pleasingly, landlord optimism also remained stable in the first quarter of 2017. This shows that confidence could be returning amongst landlords following a pretty turbulent few months. Their greater understanding of pressures likely to impact on them and subsequent strategies are lessening the impact.
More landlords understand mortgage interest tax relief changes
Encouraging
John Heron, Managing Director of Paragon Mortgages, said: ‘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.’[1]
‘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,’ he added.[1]
[1] http://www.propertyreporter.co.uk/landlords/landlords-brace-themselves-as-tax-relief-changes-begin.html
