If you’re a Letting Agent …

Initially Letting Agents may see the change in tax as a good thing because it will force rents up. In most cases they earn a fixed percentage of the rents collected, so they’ll see an increase in their profit. Unfortunately they might also have to deal with a higher amount of tenant complaints about maintenance. As Landlords are going to be hit badly by this tax increase they will have less money to spend on looking after their properties.

With rents increasing, it is likely, that rent arrears will rise too.

However the longer term consequences are likely to put many agents out of business. In the first instance Landlords will perhaps question whether they can afford to continue paying the agent’s fees (+ VAT) and may consider taking their properties under their own management.

Many Landlords will be forced to sell their properties or they may be repossessed, leaving the agent with much reduced income.

There is likely to be a serious decline in the number of letting agents due to this tax change.

If you think that we’re right in what we’ve said and want to stop the proposed tax change on mortgage interest relief please write to your local MP to ask him/her to support you.