Tax changes impact smaller landlords

landlords

Small-scale buy-to-let landlords have been worst hit by tax and regulatory changes to the private rented sector, according to the trade association for lenders.

 

A report from the Intermediary Mortgage Lenders Association (IMLA) shows landlords with one property made up 21% of the private rented sector in 2018, down from 40% in 2010.

 

Over the same period, the portion owned by landlords with five or more properties had increased from 38% to 48%.

 

A series of regulatory changes have impacted landlords since 2015, including a 3% stamp duty surcharge on additional property and tapered restrictions on mortgage interest relief.

 

Most recently, a ban on tenant fees came into place on 1 June 2019, which is estimated to cost landlords around £83 million.

 

According to IMLA, overall growth in the sector has slowed, with data from 2017 showing the first annual decline in the number of private rented sector properties since 1999.