Ban on lettings fees: Collateral damage to rural economy?
24 November 2016
Wilsons, the leading private client law firm, says today's Autumn Statement announcement of a consultation, which proposes to ban letting agents from charging fees to tenants in England, could (in shifting the burden of such fees to landlords) add to the negative impact of other recent tax changes on rural landlords.
Wilsons explains this as a result of the changes. The rules are the same as for private landlords.
Wilson's point is that the development comes from the last chancellor.
Belinda Watson, Associate at Wilsons, comments: "This initiative is clearly aimed at protecting tenants, however, in the wake of a string of new tax changes made earlier this year, this will add to the costs of rural landlords."
"The latest tax changes are at the end of the year, but in the meantime, it is the case." A heritage estate business. "
Wilsons explains that the Finance Act 2016 is a "wear and tear" allowance for repairs to rental properties. Landlords are now asking for more information about the cost of repairs.
Wilsons adds that tapering restrictions on landlords' finance costs, which will apply from 1 April 2017, so it will be necessary to avoid the full cost of borrowing against rental income.
Belinda Watson, says: "Costs to landlords of a rental property are becoming increasingly high - especially where older, homes are concerned."
"These are the most important aspects of the project."