The majority of landlords are concerned ahead of the Autumn Budget 2024, with 77% worried about potential tax increases that could impact their investments.
This was revealed in research by Butterfield Mortgages Limited that commissioned an independent survey of 501 UK landlords.
In particular, 70% of respondents said they are apprehensive about the government’s plans to abolish ‘no fault’ evictions.
Plans to ban Section 21 evictions are part of the Renters Rights Bill currently making its way through the parliamentary process. Butterfield Mortgages found that many landlords are concerned the abolishment of this power would impact their ability to manage tenants effectively.
At the same time, 71% are also concerned about the potential introduction of higher efficiency standards for privately rented properties. The government is currently consulting on a minimum EPC rating of ‘C’ for these properties, which many have complained would raise costs for landlords.
As a result of concerns ahead of the government’s budget (due 30th October), landlords are looking for support from their lenders.
Butterfield Mortgages found that 49% of landlords see expertise around tax and property purchase regulations as a high priority from their lenders. At the same time, 38% would want to see the same from their broker.
“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,” said Alpa Bhakta, CEO of Butterfield Mortgages Limited.
“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. Great financial products are not enough – the support, access to relevant experts and customer services must be exceptional, too.”
