Landlords keen for tax relief changes to be reversed

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.

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.

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Written by: Houseladder