In the bid to help first-time homebuyers, Chancellor George Osborne slashed the tax relief landlords receive from mortgage payments, severely affecting the rental home market. According to the Telegraph, the budget reform will reduce tax relief from either 40% or 45% to 20% by April 2020.
Despite having good intentions, this policy will cause serious damage in the buy-to-let business, particularly for homeowners seeking income support through their properties while they work somewhere else. An article from the Property Industry Eye states that there are a lot of properties in major U.K. cities that are currently being let while owners temporarily live in other areas for their careers. These “accidental landlords” use the earnings from the property let to pay for the expenses in their temporary homes.
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Hancock Lettings and Estate Agents 