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Adrian Malone from One Savings Bank spoke to an industry panel at the Financial Services Expo in London. The debate covered a number of key issues affecting the private rental sector, most notably recent government changes, which include extra stamp duty for second homes and a loss of mortgage interest tax relief. All agreed that these changes have had a significant effect on the private rental sector.
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“We are seeing a move towards a more professional sector and we’re going to see less of the ‘dinner party’ landlord,” said Malone.
“This is very much an era of professionalism and I don’t think that’s necessarily a bad thing for the private rental sector.”
Mortgage Interest Tax Relief Legislation
He added that he hoped government legislation to cut mortgage interest tax relief would not make it into legislation next April.
“My hope is that the Chancellor will change the tax rules for buy-to-let landlords in the Autumn Statement, but that’s probably not going to happen.”
Other members of the panel said they hoped that the government would relax their plans for stamp duty land tax, particularly in London, as the extra costs associated with moving were causing a reduction in the number of properties coming on to the market.
Lenders More Cautious
Lenders are also adjusting their policies in accordance with the forthcoming government changes. The Nationwide Building Society moved to a 145% rental calculation in the first half of this year, which is a clear sign lenders are becoming more cautious in their outlook.
