In light of George Osborne’s first all-conservative budget, CEO of My Online Estate Agent, David Grundy takes a look at what it means for the property market. You can read his reaction below:
“Cutting tax relief on buy-to-let mortgage interest is counterproductive. There is always an argument for trying to create a more accessible market for first time buyers, of course, but I question whether this tax measure will have a significant impact in that regard.”
“What it will encourage is a rise in rent charges from landlords who are looking to recoup their losses. For tenants who are trying to save up for a deposit in order to get onto the property market, increased rents will be a major set-back. At the same time, potential buy-to-let landlords will think twice about entering the market so the number of rental properties available will be reduced. This will make it harder for young people who are looking for that first bit of independence to find affordable rental properties.”
“Every business benefits from tax relief on interest so why shouldn’t landlords? They differ from ordinary home-buyers who do not have to pay tax on the gains they make on their properties. The rate of tax relief enjoyed by buy-to-let landlords was totally justified and cutting it, with a view to phasing it out altogether doesn’t make sense.”
We’d love to hear your views on the budget so please comment and let us know what you think!