Landlord tax relief cuts spark rent rise fears

In the recent Budget Announcement, plans were disclosed to scrap the mortgage tax reliefs that private residential landlords currently receive.

Related topics:  Landlords
Warren Lewis
4th August 2015
Cash

As a result, questions are being raised as to whether it is in fact landlords that will feel the impact of these cuts, or whether the cost will be passed on to tenants through rent increases. A survey from Makeitcheaper.com has revealed tenants' rising concerns over this issue.

The key findings from the survey are as follows:

    38% of tenants are feeling uncertain as to how the cuts will affect them
    Over 50% are calling for greater rent control measures to be introduced
    35% of tenants would move to a different property in the event of a rent increase

The news will surely come as a blow to tenants after it was recently reported that the UK already has some of the highest rental prices  in the whole of Europe, meaning further price increases would leave Britain's tenants paying well above their European counterparts.

If rent prices did rise:

    Just 20% of tenants would stay in their current housing
    More than 1 in 10 feel they would be forced to seek council housing
    17% would be more motivated to buy their own property

These results show that landlords may run a high risk of losing tenants by increasing rent – 80% of tenants in fact – as many would be simply unable to afford a price hike.

There are certain rules around rent price increases  that landlords must adhere to – for example, landlords cannot raise prices in a fixed-term tenancy prior to the end date, without the tenant's agreement. But, even with these precedents in place, there's a good chance that tensions between landlord and tenant could grow in the event of price rises.

With pressures mounting for those involved in the rental property industry, it can help to relieve the strain where possible. This landlord vs tenant tool can help to do just that, by clarifying common grey areas of where responsibilities for certain aspects of a tenancy lie.

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