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Lettings • Sales • Block Management

Comment on Recent Tax Changes

Introduced in April 2016, the 3% levy on second homes and withdrawal of tax allowances has had a short term negative effect on the lettings market. Long term prospects are hugely positive; a shortage of property is likely to continue for the foreseeable future. As a result the pressure on rental values is likely to be continually upward (allowing for short term market fluctuation) which suggests current affordability problems will remain at best or be exacerbated hence tenant demand will remain strong.

Many Landlords have circumvented the tax allowance changes by incorporating limited companies. We would suggest that you seek advice from your accountant to fully understand the implications of such a change.

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Added: 5th January 2017