By April 2020, once they have been withdrawn altogether, the disastrous consequences of Section 24 will mean that it is likely that higher-rate tax payers will only receive 50% of the relief that they currently get, with various experts having already warned that landlords will be left with little alternative but to pass higher costs on to tenants.

With many landlords likely to face the prospect of having their profits unjustly wiped out, the majority of landlords will have no option but to recoup their losses through higher rents, with tenants ultimately paying the price of the government’s unfair tax-grab.

The online letting agent fears that many tenants will struggle to meet inflated rent prices, with the company pointing to recent data revealing that almost 10% of all tenants in the UK fell behind with their rent payments in August 2016, and this growing problem, albeit from a low base, has forced more than 34,000 landlords to issue possession claims between July to September 2016.

Upad is now urging the government, ahead of next week’s Autumn Statement, to readdress the buy-to-let tax changes to take the pressure of both landlords and tenants’ finances.

James Davis, CEO and founder of Upad, commented: “Rent arrears are becoming the fastest-growing problem for landlords, as well as tenants across the UK, and this will no doubt be their biggest issue in 2017.

“Not only have investors had to contend with the new 3% stamp duty surcharge this year, but from April 2017, they are also facing plans to prevent landlords deducting mortgage costs from rental income and limiting tax relief on mortgage interest payments. These increased landlord costs will only make matters worse, especially for tenants who in some of the most expensive areas, such as our capital, are paying up to two thirds of their salary on rent.”

He continued: “The chancellor needs to think carefully about the damage that is likely to be done, primarily to tenants, particularly if people are relying more on the lettings market than the sales market going forward in the wake of Brexit.

“Over stretched landlords will try to recoup these additional taxes by increasing rents, but if wages struggle to increase more than inflation, landlords will struggle to secure rises, putting the entire lettings financial model at risk.”



Services

Property Valuations
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Quality Marketing
Marketing your property starts with appealing visual imagery. Our main goal is to add a personal touch to our property photos. We have our own in-house photographer who does all our photoshoots and allows us to truly represent our vision. We make sure you get the highest possible quality so that your property stands out from the crowd.
Property Management
Let us take the strain and anxiety out of managing your property with our hands-on approach. Our landlords can be assured that we will act on their behalf and with their best interests at heart. To ensure a fast, efficient and informative service for our landlords, we have installed the latest computer technology so that clients' payments can be made by electronic transfer, followed up with a detailed statement of accounts.
Legal and financial advice
Moving house can be one of the most stressful times of your life. However we know that by using our friendly, recommended law firm, Curry Popeck, that your conveyancing work will be dealt with speedily and efficiently. Stonehouse Financial is our recommended partner for mortgages & Enra Group for second charges, investment funding or bridging.
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Relocation Assistance
We are proud to be affiliated with Aussie Man & Van removals who are a market leading relocation firm covering the whole of the UK. They provide reliable relocation services and are fully insured by the BAR to give you the utmost peace of mind while your belongings are being moved.
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Maintenance
Our maintenance partner is APS Maintenance Ltd (APS) who have many years’ experience in residential property maintenance and building. With fully certified employees on call 24 hours a day, they provide an unparalleled service and speedy response to all maintenance issues.
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