Tag Archives: hints and tips for Bristol buy-to-let landlords

Will Mortgage Relief changes in 2017 hit buy-to-let landlords in Bristol?

The team at City Rental Services have been speaking to some concerned buy-to-let landlords in Bristol recently – and their cause for concern is over upcoming property legislation for 2017 around the subject of Mortgage Relief.

Advice for buy-to-let landlords in Bristol from City Rental Services

From 06th April 2017, the Government is introducing new legislation affecting the current mortgage relief rules for property investors and property landlords.

This measure will restrict relief for finance costs on residential properties to the basic rate of Income Tax. This will be introduced gradually from 6 April 2017.

Finance costs includes mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. No relief is available for capital repayments of a mortgage or loan.

Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.

Landlords will be able to obtain relief as follows:

  • in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction
  • in 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reduction
  • in 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reduction
  • from 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction

This could potentially restrict the profitability for some buy-to-let landlords in BS postcodes, leading to a slowing down of property investment in the city.

You can read more about the potential legislation and upcoming changes here.

What we would advise at this stage is not to panic, or to pull any potential property investment deals, but to instead monitor and review the legislation and make a fully-informed decision based on your existing property portfolio.

If you’re looking for advice on rented accommodation in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

Wavering property landlords could force up rental prices in Bristol

The team at City Rental Services came across a useful industry news article recently, and wanted to highlight the concerns in the news story for our readers.

The news article, which can be read in full here, discusses growing concerns in the PRS over hesitant property landlords feeling unsure and uncertain about the property market after the Brexit vote.

advice for property landlords in Bristol from letting agency City Rental Services

Although, according to the article, the industry overall has responded to Brexit in a calm and organized way, there are pockets of buy-to-let property landlords in Bristol and across the wider UK that are faltering on growing their property portfolios, for fear of negative financial implications post-Brexit.

As one of Bristol busy Lettings Agents we are finding that the demand for rental property continues to grow and has not in any way faltered since the leave vote.

Those buy-to-let landlords in various popular postcodes such as BS7 who have both student and professional well maintained reasonably priced properties appear continue to keep their properties tenanted all year round.

If you’re looking for advice on rented accommodation in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

What impact will Clause 24 have on property landlords in Bristol?

We like to use our rented property blog to inform and educate tenants and property landlords alike, and at City Rental Services this week we’re discussing a big potential issue for buy-to-let landlords – the Clause 24 update.

advice for Bristol property landlords from City Rental Services

We came across a useful update on the Clause 24 topic from an industry website – and it is worth reading the entire update here.

In essence, two property landlords are mounting a legal challenge to the entire process and policy of the proposed tax grab that could affect landlords across the country. The article covers the issues and updated action in depth.

The article highlights ways in which landlords in Bristol can support this legal challenge, including a dedicated Facebook Page and a newsletter sign-up.

You can review the full story here in full.

We recommend that all our landlords review this story and get involved.

If you’re looking for advice on rented property in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

Further Government attacks on buy-to-let landlords in Bristol

Whilst sitting in Boston Tea Party in BS7, and waiting for the City Property Lets car to be cleaned, we were contemplating the issues faced by buy-to-let landlords operating in Bristol.

free advice for buy-to-let landlords in Bristol from City Rental Services

These issues currently include:

* Immigration Act

All buy-to-let landlords in Bristol need to note – do your applicants have a ‘right to rent’ in the UK? From October it will be necessary to check all of your future tenants have a Right to Rent. Review here for further details.

* Goodbye Green Deal

The Green Deal starting and stopping has enticed many buy-to-let landlords in Bristol, with the thought of using the green deal to cut costs and improve housing stock. Unfortunately, even before cutting through the red tape, the government has decided to scrap it, as well as stopping future Deal funding.

* Shortage of housing stock

Private landlords across Bristol and the wider UK have been encouraged to spend pension pots on investment properties, but on the other hand there’s a dearth of available, fairly-priced investment properties in Bristol to purchase.

* Buy-to-let mortgages

Another issue facing buy-to-let landlords in Bristol is the potential crack-down on buy-to-let mortgages across the country, as reported here recently.

* Tenant expectations

Professional and student tenants in Bristol really appreciate – and expect – serious landlords offering them great properties with flexibility and fluidity. Today’s modern tenants have high expectations, pay considerable amounts of money in rent for properties in BS postcodes, and landlords need to respond.

Never a dull moment when you stop for a coffee!

To find out more about our letting agency services in Bristol, simply call into 58 Gloucester Road to see us.