Accidental landlords will be among those most impacted by Chancellor Rachel Reeves\u2019 Budget speech.<\/p>\n
That is according to David Adams, managing director of leading Cheshire and North Wales estate and lettings agent Cavendish.<\/p>\n
From April 2027 the property basic rate will be 22%, the higher rate will be 42% and the additional rate will be 47% \u2013 increases of 2%.<\/p>\n
It will apply to landlords in England, Wales and Northern Ireland.<\/p>\n
Adams said: \u201cAlmost a third of landlords are so-called accidental landlords and they will be among those most affected by this announcement, along with more traditional landlords who don\u2019t use limited companies to run their portfolios.<\/p>\n
\u201cThe consequences of the tax raid by the Chancellor will either be that landlords compensate by increasing rents or they decide this is the final straw and withdraw from the market.<\/p>\n
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\u201cThe tax increase comes just days after the Renters Rights Act became law which represents the biggest upheaval in the landlord and tenant sector in a generation.<\/p>\n
\u201cThe combination of the Renters Rights Act and the Budget announcement will inevitably present opportunities for landlords to grow their portfolios as others reduce their portfolios or exit completely from the sector.<\/p>\n
\u201cWe are already seeing an increase in enquiries from landlords seeking a health check and we expect this trend to only intensify as landlords continue to take stock.\u201d<\/p>\n
The government also unveiled a mansion tax in the form of a council tax surcharge, which will range from \u00a32,500 for a home worth between \u00a32m to \u00a32.5m, to \u00a37,500 for those worth more than \u00a35m.<\/p>\n
Adams added: \u201cIt is a bureaucratic nightmare given that it will require the first revaluation of council tax bands in almost 35 years. If the policy does ever go ahead, it will inevitably be beset by appeals by homeowners who find themselves being dragged into the mansion tax.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Accidental landlords will be among those most impacted by Chancellor Rachel Reeves\u2019 Budget speech. That is according to David Adams, managing director of leading Cheshire and North Wales estate and lettings agent Cavendish. From April 2027 the property basic rate will be 22%, the higher rate will be 42% and the additional rate will be […]<\/p>\n","protected":false},"author":1,"featured_media":5906,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n