Latest News

Winter weather precautions

20 January 2021

Propertymark Industry Supplier, Gallagher offers practical steps that can help agents and their clients reduce the risk of damage to property as areas of the nation are set to see further warnings of more inclement weather to come. Damage caused by the escape of water from frozen pipes and other equipment can be extremely costly in repairs and disruption. Read More...

Concerns raised over new energy efficiency proposals

20 January 2021

Propertymark has responded to the UK Government’s consultation on Improving the Energy Performance of Privately Rented Homes in England and Wales by highlighting a number of concerns. These relate to affordability and the need to look beyond a one-size fits all policy and develop proposals that work with the different age, condition, and size of properties in the private rented sector. Read More...

Landlord Income Tax Relief fully phased in

Monday 06 April 2020

At the Summer Budget 2015, the then Chancellor George Osborne announced that the amount of Income Tax relief landlords can get on residential property finance costs will be restricted and gradually reduced from April 2017 until April 2020.

This means that from 6 April 2020 to 2021, 100 per cent of financing costs acquired by landlords will be given as a basic rate tax reduction. The final phase reduces the percentage of finance costs that can be deducted from rental income to 0 per cent and raises the percentage of basic rate tax reduction to 100 per cent.

As a result, from April, landlords will have to pay income tax on the full amount at the basic tax rate of 20 per cent. The rules affect UK residents who let residential properties in the UK or overseas as well as non-UK residents who let residential properties in the UK.

In his Budget speech, George Osborne said that the measures would, “create a more level playing field between those buying a home to let and those buying a home to live in”. Due to the changes, ARLA Propertymark has argued that the policy has pushed many landlords up a tax band, despite their income not increasing as tax is applied to turnover instead of profit.

Consequently, to cover these additional taxes many landlords have increased rents for new and existing tenancies. Many are also having to cut back on other expenses such as property maintenance. As the extra tax continues to mount up some landlords will sell up altogether and leave the sector. Over the long term this will impact on the value and quality of property available.

To support members, a Fact Sheet on the Restriction of Financial Costs is available in the member’s area. Login below.

Fact sheet