Legal and Finance: Increasing Regulations Cut Income of Landlords
Investors thinking abut pumping money into property in exchange for a healthy rental income were yesterday warned about the rising cost of becoming a landlord.
The Residential Landlords Association, whose members control more than pounds 1.2 billion of property and 30,000 tenancies across the UK, warned those considering buying properties to rent that the price of supplying property to private-sector tenants is increasing alarmingly.
According to the association, most of the costs are associated with stealth taxes, ever-increasing local charges and increasing regulations.
But with the average property now costing more than pounds 100,000, stamp duty on purchases is also beginning to bite into the profits investors expect.
Martin Moylan, RLA chairman, said: 'Stamp duty is also payable by landlords and tenants on lettings of more than pounds 94.16 a week, and changes being introduced by the Inland Revenue in April will undoubtedly drive up accommodation costs.
'The changes relate to the removal of a concession for landlords of domestic property where they can obtain a tax deduction for the repair element of an improvement, but from next year the practice will be outlawed. …