AXA’s recent survey of landlords has found much unrest among this group following the introduction of the new government plans to phase out landlord tax relief which commenced on the 6th of April 2017.
Here are the summarized findings of this survey:
67% of landlords feel stigmatized
40% of landlords believe they will be worse off
21% plan to sell all their rental properties
10% will reduce their portfolio
7% will switch to commercial property ownership
8% will transfer ownership to spouse or family member in lower tax bracket
Gordon Rutherford, Head of Marketing at AXA Insurance, stated: “Landlords have been subject to one piece of legislation after another in recent years, much of it very complex indeed.” Many landlords are only accidental landlords, letting a house they are struggling to sell; an inherited property; or a home they no longer live in. These people only make a modest income after expenses are considered.
The problem the government are now creating is that by penalizing landlords, nearly half are looking to sell off their properties, leaving a huge gap in the rental market and driving up rental prices! Looks like once again this legislation has not been thought through!