Budget Measures Hit Letting Agents
1st June 2015
There has been much discussion about how changes to tax relief will affect landlords; however letting agents could be considerably affected by the budget announcment also. The tax relief on buy to let mortgages has decreased by 45% this will have a huge influence on net returns.
There will inevitably be a short to medium term reduction in the number of buy to let properties, due to increased risk involved. It is predicted these budget changes will have a negative impact on lettings agents. However transparency in communication with landlords is imperative, reminding them that buy to let properties is a long term investment. To panic and sell now ould be a mistake.