Landlords fear tax hikes and Section 21 reforms

Landlords fear tax hikes and Section 21 reforms

10:10 AM, 30th October 2024, About 3 weeks ago

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UK landlords are growing increasingly anxious about potential tax hikes and regulatory changes, particularly the looming threat of Section 21 eviction reform.

A survey by Butterfield Mortgages reveals that 77% of landlords fear that tax increases, such as a potential rise in Capital Gains Tax, could negatively impact their investments.

Also, 70% of landlords expressed concern over the government’s plans to abolish Section 21 ‘no-fault’ evictions, fearing it could hinder their ability to manage tenants effectively.

A slightly higher proportion, 71%, are worried about the potential introduction of stricter EPC energy efficiency standards for rental properties by 2030.

Tax and regulatory change in the BTL market

Butterfield’s chief executive, Alpa Bhakta, said: “There has been a significant amount of tax and regulatory change in the BTL market over the past decade, and there’s plenty of speculation that more is coming – landlords are understandably wary of the implications.

“The Budget will provide much-needed clarity, but our research underlines that lenders and brokers, and third-party experts, have a vital role to play in the weeks and months to come.

“Landlords evidently value tax and regulatory expertise particularly when facing potential widespread policy changes.”

Landlords are seeking more assistance

The research found that landlords are seeking more assistance from lenders and brokers to refer them to tax and regulatory professionals to understand new reforms and policies.

When given a list of qualities that they look for in a lender, 49% of landlords wanted ‘expertise around tax and regulation concerning my purchases’.

The same was true of brokers – 38% of landlords said they wanted this expertise from a broker, placing it ahead of the range of financial products they have access to.


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