Be more businesslike, landlords told
Landlords are being urged to adopt a more ‘businesslike’ attitude towards the management of their buy-to-let portfolios as it’s revealed a number of landlords are not aware of certain legislative changes affecting the market.
According to new research from mydeposits, 26% of landlords are unaware of the changes to mortgage interest tax relief, and 23% have failed to realise an extra 3% stamp duty surcharge has been added to the purchase of second homes.
However, for 44% of landlords, the changes to mortgage interest tax relief have affected them, and they are planning to make changes to the investment properties they own as a result.
The research confirms a supposed reality where the landlords who only own one or two properties are less likely to approach letting out those properties in a businesslike way, and are more likely not to know about recent changes to legislation. Meanwhile, those with four or more properties and more established portfolios are more likely to adopt a businesslike approach.
The majority of landlords included in the survey plan to make changes to their portfolio in an attempt to hold onto their profits in the wake of tax hikes.
Less Tax for Landlords founder, Tony Gimple, said: “Landlords should be running their buy-to-let portfolio as a business regardless of tax changes, and those forced out of the market will be the ones who are too highly geared with too little yield.”
He added: “Many landlords are trying to do everything themselves and often following unreliable or out of context information, whereas once they are professionally educated on what their options are, many choose to remain landlords and go on to prosper.”
Landlords can always seek the help and guidance of a local letting agent to ensure they are aware of all the changes impacting the buy-to-let sector.
Find more information HERE.