Frustrated landlords, renters and owner occupiers
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Frustrated landlords, renters and owner occupiers

Last month we reported on the summer budget and the potential financial consequences – not just for landlords and renters – but commenting on whether tax changes address the lack of supply in the UK housing market. Budget news continues to trend: the Residential Landlords Association have reported 65% of their landlords surveyed are now considering rent increases as a direct result of the budget.

The Association’s findings undermine HM Revenue and Customs’ assessment that budget measures will have no significant impact on rent levels and it is argued that the basis of the budget assumptions is wrong.

Furthermore, many landlords who let their properties either fully or partially furnished, are very likely to be affected by the removal of the annual wear and tear allowance reports the National Landlords Association, leaving them with no recompense for the general wear and tear of a property. However if landlords are letting unfurnished - the proposed replacement system will benefit this group.

Landlords can also expect to see continual growth in the rental market as PwC forecast in their UK Economic Outlook report stating more people will rent privately than own a mortgage in the future.So for landlords with properties to let, a generation of renters is emerging, and the long rise in the UK owner occupation rate in the post-war years seems to have gone into reverse. 

Best regards,

Giles Atkinson and Dan McLeod
Atkinson McLeod London Estate Agent

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Winner or loser with the removal of wear and tear allowance?

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