A growing number of buy to let landlords are letting out their homes as short-term holiday lets rather than long term rental properties.
This makes a large number of properties no longer available for long term renting following the introduction of a raft of ‘anti-landlord’ policies. The introduction of the 3% stamp duty surcharge, the abolishment of the 10% ‘wear and tear’ tax allowance and the fact that mortgage tax relief is currently being phased out have prompted concern that there could be a net reduction of long term private rented properties next year.
Landlords are looking for other ways to boost income levels and this includes the use of properties as short-term holiday lets.
Read more: Increasing number of Brits considering home hosting
The Residential Landlord Association’s (RLA) Private renting Evidence, Analysis & Research Lab (PEARL) have analysed a number of property listings in Cardiff and found that the number of Airbnb listings in the city have increased by 259% year on year.
This data suggests that almost one in five of the properties to rent in Cardiff are now being offered through property hosting services such as Airbnb, SpareRoom and Homeaway.co.uk.
Read more: Is it more profitable to rent out your property on a short term basis?
The study has also revealed that out of those landlords now offering short term lets, more than a third are doing so because of tax increases on landlords. One landlord who has made the move to holiday lets commented:
“I didn’t want to do this, but the tax changes have forced me down this route. Selling is not an option due to capital gains tax, and this iniquitous tax which is effectively retrospective is unjust in that my buy to lets are a business, just like any other. There will be less properties available to rent as a result of this tax.”
While the RLA vice-chair and director for Wales, Douglas Haig said:
“With the tax changes incentivising the use of homes as short-term holiday lets it is tenants who will suffer as fewer properties are available for them to rent for the long-term.”
“The government wants longer term security for tenants, especially families, and landlords support this, but they need to change their tax policy to achieve it,” he added.
If you are renting out your property on a hosting website, Discount Landlord can provide you with specialist Host Protection Insurance – call 0800 294 4522 to get a quote.
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