The Prudential Regulation Authority, part of the BoE, will begin enforcing harsher standards for landlords with four or more mortgaged properties in two months’ time. Lenders may be required to look at a landlord’s entire portfolio when they decide what mortgage deal they can offer on a single property, and they may want to see proof of rental income and a business plan to support a new application.
Meanwhile, data from HomeLet shows that UK rental prices fell for the second consecutive month in June, dipping 0.3 per cent year on year. The decline was led by a slowdown in London, where rates dipped 2.6 per cent. The research also shows that average rents in the capital have climbed 45 per cent in a decade.
Beavis Morgan – Specialist property advisers
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations. For further information about how we can help you with your property ambitions, contact Steve Govey or your usual Beavis Morgan Partner.
Further reading: Landlords make their move to avoid tax increase and maintain profit