Rents in the UK’s private sector have increased by 1.1% to February this year  with growth expected to continue. This comes from data published by the Office for National Statistics (ONS) which also show that London has only increased by 0.2%.
Rents are expected to rise even higher as more and more landlords become aware of the significant changes in mortgage tax relief. Read more about those changes here.
Kate Davies, executive director of the Intermediary Mortgage Lenders Association (IMLA) explains how pressure will continue on private landlords through 2019.
Property Wire – ‘The National Landlords Association has predicted that changes to landlord taxation are likely to increase receipts by almost £2 billion within the next five years: the Government should seize this opportunity to ensure that the health of the Private Rental Sector is not eroded further, and that the number of available rental properties does not continue to decrease. Buy to let landlords represent a vital element of the Private Rental Sector, and the IMLA will continue to closely monitor the impact of the tax and regulation changes,’
Here at MacBeale we believe that the buy-to-let market will have private landlords struggling to achieve healthy profits from their properties without negatively impacting tenants who are unable to get mortgages, of which there are so many in the UK.
MacBeale are focusing very strongly on Life Tenancy Investments during this uncertain time.