Fall in rental growth is driven by London says Countrywide.
Countrywide PLC Monthly Lettings Index for March 2017 published yesterday headlined – ‘One in five homes let, owned by a company landlord – a record high’.
According to the report: In the first three months of 2017 the proportion of homes let by a company landlord reached 20%, a record high. Changes to tax relief calculations by the government on properties owned by individuals is encouraging more landlords to buy and own homes through a limited company.
Rents in Great Britain fell 0.3% compared with March 2016 to stand at £928 pcm.
Commenting Johnny Morris, Research Director at Countrywide, said: “The number of rented homes owned through a company is on the up. The incoming tapering of mortgage tax relief is likely driving the increase. Companies are generally taxed more favourably, particularly with recent changes by government to tax relief, so in many cases landlords can make cash savings by operating through a company rather than as an individual.
“Rents fell again in March, mostly driven by falls in London. Stock growth continues to outpace demand in the capital, giving tenants more negotiating power, pushing down rents. In much of the rest of the UK rents continued to grow, although at a slower rate.”
Read the Countrywide PLC Monthly Lettings Index for March 2017 in full click here.
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