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A-Z of Lettings K is for Key Points from the Spring Budget

K is for Key Property Points in the Spring Budget

The Chancellors Spring Budget announcement might have been a little underwhelming for landlords and property investors.

The recent lobbying from Landlord groups, estate agents and house builder’s  has seen little effect in reversing the Governments previously announced measures to tax landlords and investors. There was no announcement to drop the 3% stamp duty charge on second homes or to reinstate the mortgage interest tax relief for buy-to let landlords which will be cut next month. The long term impact these measures will have on the smaller buy-to-let investor can only be negative, with little to encourage movement in this sector.

Indeed there was no mention or reversal of the ban on Letting agent fees which although some regulation is necessary to deter rouge agents the fees will ultimately be passed on to the landlord and hence the tenant as rents will increase. This is yet another deterrent for individual investors in the private rented sector.

Yesterday’s budget was another missed opportunity by the Government to boost the housing market and the supply of rental properties by supporting landlords and investors.  The more squeeze the government put on the private rental sector the less attractive it becomes. This will ultimately affect the supply of rental property and push rents higher.

More and more investors will opt out of the rental markets and look elsewhere to put their money.

So to sum up the budget the overwhelming silence of any positive news for investors was loud and clear!

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