Landlords are unfazed by the prospect of both, according to a recent study…
In a recent survey by YouGov, landlords revealed that higher interest rates would have little affect on the repayment of their mortgage, and suggested that the growth of their portfolio is not dependent on the level of tax relief available.
Surviving or thriving?
Since Chancellor Osborne announced his summer plans for the sector, landlords have been hit with a number of legislation changes – including this week’s right to rent scheme.
As the government looks to introduce measures to stabilise the buy-to-let market, landlords have been left wondering how they’ll next be affected.
Working on the hypothetical scenario that interest rates rose 1.5 per cent, YouGov’s poll revealed that the majority of landlords would feel comfortable about continuing to repay their mortgage.
Other than those who believed they’d be able to cope without much change (around three quarters of those surveyed), other less-popular answers included re-mortgaging to a cheaper deal and increasing rents to cover the extra amount.
Landlords have always faced a number of expenses to keep their properties in check.
Along with unpaid rent and property damage costing billions each year, buy-to-let owners also often require separate and tailored landlord insurance aside from their regular home insurance.
To add to these on-going costs, landlords have recently been hit by the news of upcoming reduced tax reliefs – yet surprisingly, investors are still looking to grow their rental businesses.
A whopping 60 per cent of landlords say the tax changes won’t stop their rate of growth, an astonishingly high percentage given that only 27 per cent indicated they would slow down or sell all of their property.
How will the tax changes affect your property portfolio? Let us know below.