Tag Archives: independent rented property advice in Bristol

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.

A Day in the Life of Michaela Thompson, CRS Lettings

Here at City Rental Services it’s that time of the month when we hand over our rented property blog to one of the team, for them to showcase their stuff!

What’s your full name and job title?

Michaela Thompson, CRS Lettings

rented property expertise from City Rental Services lettings team member Michaela Thompson

How long have you been at CRS?

Five years.

What are your main responsibilities?

My main responsibilities are to keep a record of all the properties ready to go on the market, and advertise them on our website.

I do regular property inspections to ensure the properties are being looked after, and do inventories for our portfolio of rented properties in Bristol.

I meet with landlords to value the properties, and carry out viewings for people looking for a new home. Once someone has applied for a property tenancy, I make sure we have all correct details to proceed with the tenancy application.

Why are property inspections so important?

It is important to carry out regular inspections to keep the properties up to a decent standard, and to ensure the property is being looked after properly.

How do you deliver the best rented property inspections?

By taking lots of photos, and by being thorough in my reports.

Why do rented property inspections help landlords to rent properties?

It allows the landlords to keep on top of the property maintenance, and ensure it is shown at its best for potential tenants. Inspections for advertising should also take into account for the rented properties kerb appeal.

What issues do you help landlords and tenants overcome in Bristol?

It is important to make sure that both the landlords and tenants are equally happy, for landlords to achieve the best rents, and for tenants to be happy in their rented accommodation in various BS postcodes.

How did you get into the rented property sector as a career and why?

I started off doing admin with another Letting Agency in Bristol, and I have always been interested in property.

What do you think of the Bristol rented property sector at the moment?

There is very high demand for rental properties in Bristol and we like to be able to help with a decent home for applicants.

What are your predictions for the rented property market in Bristol in 2015?

To continue to be strong, especially with student tenants across the city.

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