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Are You a Landlord Looking to Cut Costs? You are not Alone

If you’re a landlord looking to cut costs and increase your profits, you’re definitely not alone. According to results from Kent Reliance for Intermediaries’ recent report, nearly a third (29%) of landlords and property investors are searching for ways to reduce their mortgage costs.

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.

With heightened running costs and ever-increasing tax laws restricting the profitability of buy to let properties has expectedly come into question. The start of the offensive tax laws started with lowering tax benefits on borrowing and mortgage interest rates, and this has only got worse.

Landlords suffer upfront surcharges on buy-to-let properties, increased stamp duty land tax and reduced mortgage interest tax relief. There’s also been a decrease in relief on wear and tear, lessened capital gains tax lettings relief, and more stringent borrowing standards. On top of all this, the government has made borrowing money for and running a rental property an administrative nightmare – a veritable perfect storm for trouble.

Are you considering leaving the property market?

Many landlords are even considering getting out of the business entirely, but there are still options for business owners to pursue.

In an attempt to battle some legislation and reinvigorate the buy-to-let mortgage market with some activity, certain lenders are offering a lower “stress rate” for potential landlords willing to take out a fixed rate deal for a 10 year period.

This bodes well for new landlords, but there are still ways for those already in the business to profit, such as exploring holiday lettings, and working closely with a financial advisor to ensure they’re taking advantage of every possible tax relief they are entitled to.

Landlords are important to our economy

The report not only emphasises the contributions that landlords make to the country’s economy, but it also delves into their spending (maintenance, refurbishments, etc) and the impact of political and economic changes.

Through spending, landlords actually contribute an impressive £16.1 billion to the British economy – an impressive improvement (practically doubling) over the £8.5 billion they contributed ten years ago.

However, as a result of all the tax roadblocks imposed on them and increased running costs associated with managing properties, 36% of landlords may cut their expenditure. It seems property maintenance and development, letting agent fees, and mortgage are the primary culprits for why landlords are looking to cut costs.

Get in touch

If you’re currently interested in pursuing a buy-to-let property or increasing your property portfolio, get in touch with us today. We can help prepare your finances for your new business venture and help you get started on the journey.

Need help to secure a buy-to-let mortgage?
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.

Tel: 01403 780 770


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