I’m an obsessive reader of news, (yes – I’m dull outside working hours too) and almost everyday at the moment, there’s another article in the papers, sometimes two about landlords withdrawing from buy-to-let because of the changes in the tax rules on mortgage interest. And there has been another slew of articles recently about how the ban of tenant fees might mean agents passing on additional costs to landlords, making things even more costly. With the result that some buy-you-let investors might find the whole thing just too unappealing and bail out of the market.
We believe some landlords in the borough are still not completely up to speed with all of this. They’ve just about absorbed the changes so far, but don’t realise that by April next year –they wont be able to offset any of their mortgage costs against tax. (Different rules apply of course for companies).
They also often don’t realise how some people will move up into a higher income tax band because of this change. The results are too complex for this blog, but there is a lot of information on what the changes mean for small landlords and calculation tools on the websites of the various professional landlord organisations – also on those of the various companies who provide financial services to landlords like mortgages or insurance.
I’m not going to link to any particular site as they are all commercial – there’s nothing wrong with their information (and they are all far more expert than this blog), but you will appreciate, we have to be very careful about endorsing commercial products. They are all easy to find though. So if you are a small landlord – please don’t just assume that next year will be the same as this year. It almost certainly won’t be. Get googling and get doing your sums.