Brexit and tax are key worries for buy to let investors in 2020
A new survey suggests there may be an exodus of investors out of buy to let – some 27 per cent say they may no longer be a landlord in 2021.
And in the survey – by insurance firm Just Landlords – some 31 per cent of landlords say they have more worries than they did 12 months ago, with 28 per cent claiming that owning a rental property is “very stressful”.
The overriding feeling is that Brexit will adversely affect the market, says the company; 23 per cent of respondents believe it will become harder to find new tenants, while 25 per cent say rental properties will be harder to come by.
Another significant change relates to the phasing out of deductible mortgage interest payments.
Until 2017 mortgage interest payments were tax deductible but from April this year that will no longer be the case. Instead landlords will receive a tax credit calculated at 20 per cent of their mortgage interest, reducing their tax liability by the same percentage.
All these factors contribute to 26 per cent of respondents saying that this year will be more expensive for landlords.