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Will Amateur Landlords Become a Thing of the Past in 2019?

Slowly, but surely, it seems that the benefits of being a ‘part-time’ landlord are eroding. Within the last few years, landlords have seen new legislation passed, tax regulations tightened, relief lessened, mortgage standards tightened, and their profits threatened. Will 2019 finally be the year that amateur landlords become a thing of the past? Some financial experts believe this year may very well be the end.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.


The difference between consumer and professional landlords

Landlords can’t seem to catch a break. This year, amateur landlords can expect even further tax relief cuts, with absolutely no financial incentives left by the start of next year.

Keep in mind, we’re talking about consumer landlords here, not professional landlords, whose primary business is the running and management of multiple properties. Consumer landlords, however, are largely landlords of circumstance rather than ambition. They are individuals who take out a mortgage on a property that isn’t expressly used for business. Perhaps, they inherited a property that was already being rented out or hope to let out a home after living in it for a period of time, or are even sitting on a property and plan to sell it once the market picks up but are renting it out in the meantime.


It may come as a surprise, but consumer landlords actually make up roughly 60% of the landlord population.


This percentage is likely change though, as what was once a profitable, relatively low-stress endeavour has now become bogged down with endless admin and has become subject to a mountain of tax regulation that an amateur simply can’t hope to keep up with.


The declining benefits of being a consumer landlord

The changes began with lowering tax benefits on borrowing and mortgage interest rates for landlords and has snowballed from there. It isn’t clear why the government has attempted to make it more costly – with upfront surcharges on buy-to-let properties, increased stamp duty land tax, and a drastic reduction on mortgage interest tax relief – but all changes have hit landlords where it hurts the most – their wallets.

Landlords have also seen a decrease in relief on wear and tear, the lessening of capital gains tax lettings relief, and stricter borrowing standards. The government has also made it an administrative headache to borrow money for and to run a rental property, making the entire process incredibly complicated, thus lessening the appeal for consumer landlords.


Is it time to get out of the game?

For many amateur landlords, any one of these could have been the straw that broke the camel’s back, but seeing them all laid out in front of you is surely disheartening enough to make anyone want to throw in the towel.

Getting out of the game this year might prove slightly beneficial as individuals won’t need to endure additional cuts, legislation, and tax liabilities.

So if you’re a consumer landlord looking to unload one or more of your properties, but are unsure of the best way to go about it, consider seeking out professional advice. An expert will be able to weigh in on the best course of action and help you decide if selling is the right thing to do.


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Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.

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