Tax and red tape bear down on property investors
Summary
The article reports that tax changes, higher compliance burdens and potential planning restrictions are materially affecting holiday let owners’ decisions to remain in the market. Survey results from the Cumberland Building Society indicate that council tax premiums, mortgage interest relief changes and the abolition of the Furnished Holiday Let regime are all influencing owner behaviour, with many also preparing for a National Registration Scheme.
Why it matters
Residential property surveyors may encounter more holiday let owners considering sale, conversion to long-term rental, or changes in use as policy pressures increase. The article also highlights potential planning and regulatory developments that could affect local housing supply and investment demand.
Key points
- 72% of surveyed holiday let owners said council tax premiums on second homes and holiday lets influenced their decision-making.
- 70% cited the removal of full mortgage-interest relief as a major or moderate influence.
- 67% said the abolition of the Furnished Holiday Let tax regime affected them, and 62% pointed to increased reporting and compliance requirements.
- 55% said they would be likely to sell if a C5 planning class restricted holiday lets in their area.
- 84% said they were prepared for the National Registration Scheme.
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