Today Mr Osborne revealed at his emergency budget announcement, that he would level the playing field between buy-to-let landlords and those looking to buy a property to actually live in themselves.
By cutting buy to let tax breaks and capping the amount landlords can claim as tax relief on the basis rate, it should reduce the advantage landlords hold over first time buyers and go some way to addressing the difficulty UK buyers have when trying to get on the property ladder.
Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, commented:
“George Osborne’s intention to level the playing field between landlords who buy property to let and those who buy to live, is going to have financial consequences for renters in the private sector.
Landlords are going to be up to 20% worse off as previously enjoyed tax relief rates of up to 45% soon disappear. Based on the average rent they could be up to £2000 worse off each year. I can only see the result being an increase in rental prices which in turn further hampers those trying to save to get on the property ladder.”