The increasing tax burden on landlords is likely to result in increased rents, according to research from the Intermediary Mortgage Lenders Association (IMLA).
While rental prices continue to be subdued and below the rate of consumer price inflation across much of the UK, as reflected by the latest ONS data, landlords are now facing the challenges of increased legislation and changes to mortgage interest tax relief.
Kate Davies, executive director, IMLA, said: “As buy-to-let borrowers start to feel the effects of income tax changes reflected in their most recent tax bills, the pressure to increase rental prices is likely to mount.”