Turbulence, extra regulation, higher interest rates, changes to tax rules and other aspects are having a major impact on the Private Rental Sector.
As available rental stock drops and rents increase, it has been claimed that over 25% of landlords or buy to let property owners are looking to sell in the near future. This claim comes from research carried out by cherryplc.co.uk. It also shows that a larger percentage of buy to let landlords will increase rets over the coming months.
With many people struggling with the cost-of-living crisis, Michael Gove has hinted there may be some help on the way, stating there may be 'targeted support' for families and others who are struggling. While there was little more detail when discussing the situation on the Sunday With Laura Kuensberg programme, there was the hint of 'some' help and that there were a range of options being considered.
The government has been urged on many occasions to scrap the stamp duty surcharge for landlords currently standing at 3%.
During 2022 we have seen a large fall in the number of available rental properties compared to previous years and more people looking per property than ever before. This has meant rent prices have increased substantially over recent months.
Rental prices in the UK have soared over the last few months alongside a drop in advertised rental properties.
Although we are in the midst of a cost of living crisis, property rents have increased throughout the UK. In September 2022, available rentals were a third down and this has helped fuel significant increases in rental costs.
Section 24 is an amendment to UK Tax law which applies to income on residential rental properties. The change means the amount of income tax relief received by landlords is reduced.