A major shake-up of the buy-to-let housing market could be about to take place, after chancellor George Osborne announced plans to change mortgage tax relief for landlords.
In his Budget speech today, the chancellor said the relief will be cut to 20 per cent, from 40 to 45 per cent, in an effort to "level the playing field" between buy-to-let landlords and ordinary house buyers.
Experts suggest the move is a "significant change" for those with a rental portfolio – but how will it affect them? What's experts' advice?
Grainne Gilmore, head of UK residential research at Knight Frank, said those planning to purchase a new property will need to factor the new rules into their calculations.
"This could affect the offers they are willing to make."
If you're planning on buying a property, consider how much your costs will rise, adds Phil Nicklin, real estate partner at Deloitte.
But what of renters themselves? The measures "ultimately may backfire and hit people who are having to rent", warned Robert Walker, PwC's real estate partner.
"We could see buy-to-let investors feeling the squeeze and putting up rents. This would have a major impact on Generation Rent."
|What next? Savills' Lucian Cook offers advice to landlords|