Changes needed to incentivise landlords
Posted on 28th July 2011
Changes are required in order to incentivise greater investment in the private rented sector, it has been suggested.
Chris Horne, editor at Property Hawk, noted more attention needs to be paid to how rental properties are taxed.
Such a move would be likely to encourage landlords to spend more cash on their houses and flats, as they will be able to afford offsetting improvement costs against rental income and other earnings.
"At the moment, you can't offset any improvement works against income tax, so therefore, to a degree, there is very little incentive to actually invest and improve your property," Mr Horne explained.
He noted a lack of incentive for proprietors to part with their money can lead to the properties being left in worse condition than those in the owner-occupier sector.
His comments come after the latest Young Index revealed an increasing number of landlords are considering buying more investment assets across the next year.