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With mortgage rates continuing to rise, both homeowners and renters are being affected, albeit not equally. Although landlords are continuing to face increasing mortgage rates, they have also seen the final effects of George Osborn’s abolition of Mortgage Interest Relief, which ratchets up the impact of interest rate increases on landlords with Buy-to-Let mortgages. These have resulted in landlords either having to pass on the increase to tenants or sell up. The latest Landlord Confidence Index from the National Residential Landlords Association (NRLA) shows that landlord confidence is continuing to slide. As the supply and demand gap widens in the private rented sector so rents increase still further.

To combat the tax increases many landlords have been incorporating their portfolios which is often an expensive option requiring a landlord to sell their property to a company they create and incur capital gains and stamp duty charges. However, for properties that are not heavily encumbered or for ‘wannabe’ landlords, there are still lucrative opportunities to be found if you know where to look where returns are substantially higher than putting money away in the bank or investing in the turbulent stock market.

Please note that this article does not represent advice. All information provided is for informational purposes only and shall not be relied upon as personal financial advice. Any reference to a specific investment strategy is only to assist in learning and shall never be relied upon when making future investment decisions. Although to ask any related questions, please do contact Nigel Woods via email at Nigel@woodsproperties.co.uk