Landlords keen for tax relief changes to be reversed

Jessica Nangle

July 6, 2017

Landlords have called on the government to prioritise a reversal of the changes to tax relief on buy-to-let mortgage interest.

The Paragon Mortgages PRS trends report for Q2 2017 revealed this information based on interviews with 201 experienced residential landlords.

The tax changes are being phased in over three years from April 2017 and mean higher-rate tax payers can no longer offset all of their mortgage interest against rental income before calculating the tax due.

Landlords increasingly considering move into holiday lets

John Heron, managing director of Paragon Mortgages, said: “Having taken active steps in preparing for a difficult period of transition as the tax relief changes continue to be phased in, landlords are now facing up to the challenge ahead.”

The other most commonly reported actions taken by landlords in Q2 were to increase rent and repay some or the entire mortgage.

This comes as 88% of landlords say they now understand the personal implications of the tax changes – the highest figure since Q4 2015.

Enter your e-mail address to receive updates on this topic straight to your inbox

* indicates required
Send me news alerts on:
  • Brian Hall

    Landbay’s Rental Index shows that rental growth in the first half of 2017 slowed to a third of last year, the work of Professor Paul Cheshire at the LSE is suggests that a property price correction is long overdue (with a fall of 40% being quoted) and the Bank of England say that interest rate rises are on the cards. Maybe the music is about to stop…

  • Barry

    This Government isn’t listening! Millions of Tenants will have to suffer massive rent rises, evictions and soaring homelessness before the Government will learn the lesson, and face the embarrassment of being forced to withdraw this tax (Sec.24).
    Murphy’s Law says this happen the most inconvenient and most embarrassing time for the Government,i.e. in the run up to the next general election, instead of biting the bullet and do it now before the real damage is done.