Landlords undeterred by mortgage tax relief changes
Landlords still view long-term property investment in a positive way, despite tax changes affecting the sector.
Almost 60% of landlords still see property investment in the long-term as low risk and high on returns, and are less concerned about the changes to mortgage interest tax relief.
In April this year, the government introduced changes to mortgage interest tax relief. This limits relief for finance costs to the basic rate of Income Tax, and applies to individual landlords who own residential property.
However, residential property in the UK is generally viewed as a safe investment, even during periods of economic or political uncertainty.
This is backed up by the fact that since 1972, the year records began, there hasn’t been a five-year period which brought a negative return on investment in residential property.
But the study revealed that while the majority of existing landlords remain confident in residential property investment, some potential landlords are shying away from the buy-to-let market.
But these findings show that current landlords, especially those with well-established portfolios, are still confident their properties can offer good returns on investment, even if the recent changes are putting off some would-be property investors.
For more on this story, click the link below: