Landlords are being asked to help the government offset the social consequences of Coronavirus and should be cut some financial slack, a leading property firm has claimed.
Landlords are facing significant financial losses as the coronavirus pandemic continues and therefore the government should delay the imminent loss of tax relief on their mortgage payments.
That’s the claim of property management firm Apropos by DJ Alexander, which says postponing the final part of the loss of tax relief on buy-to-let mortgage interest, along with a Capital Gains Tax cut in lettings relief, would give landlords a financial boost at a time when many are concerned about their property investments.
Both moves are due to come into force on 6th April. However, joint MD David Alexander believes that while a delay wouldn’t have an impact until landlords complete their tax returns or sell their properties, it would be a positive sign for the sector.
“Landlords, whose immediate thoughts are the safety of their tenants, will be concerned about their future in the sector once this crisis is over,” he says.
“Some may even be considering exiting the market so any sign that their investment will be made more viable would be welcome during these difficult times.”
Alexander says he’s been approached by hundreds of property owners in the last fortnight who are desperate to move their properties from short term to long term letting.
“The result of this over supply means we may experience an excess of properties available, resulting in lower rents and smaller yields.” He adds: “It is likely that property values will be hit in the short to medium term, so many landlords and investors will be unwilling or unable to exit at that point, so encouragement to remain in the sector remains paramount if we are not to experience a potential shortage in the private rented sector in the future.”