Recent changes hitting buy-to-landlords, including the introduction of a 3% stamp duty surcharge and cuts to mortgage interest tax relief next year, will mean a move towards more professional landlords, it has been suggested.
Adrian Moloney of One Savings Bank believes that the recent and forthcoming changes will inevitably have implications for individual landlords, which will lead to “an era of professionalism”.
Speaking at the Financial Services Expo (FSE) London exhibition last week, Moloney said: “We are seeing a move towards a more professional sector and we’re going to see less of the ‘dinner party’ landlord. This is very much an era of professionalism and I don’t think that’s necessarily a bad thing for the private rental sector.”
Moloney does not believe that some of the changes coming into play are necessarily a good thing for the buy-to-let sector, especially the scrapping of mortgage interest tax relief from next April.
“My hope is that the chancellor will change the tax rules for buy-to-let landlords in the Autumn Statement, but that’s probably not going to happen,” he added.