Thought Tories were bad for landlords...

HARD-PRESSED landlords could be forgiven for believing a ‘Corbyn catastrophe’ awaits them.

As easy whipping boys for hardLeft politicians, landlords can expect austere controls on rent rises and the introduction of longer tenancies of up to three years.

These plans, already pledged by Labour, are just the latest challenges to face landlords.

Recent changes to tax breaks – plus the scent of more curbs to come – have provoked an exodus from the market. Many buy-to-let owners have chosen to cash in now in case capital gains tax (currently 28 per cent at most) spirals skywards under Corbyn.

Those renting out properties are already feeling battered and bruised. The onslaught on landlords – blamed for fuelling property prices beyond the reach of many first-time buyers – has ranged from a 3 per cent surcharge on stamp duty paid on buy-to-let properties, tighter lending criteria and a massive squeeze on the tax relief available on mortgage interest. In

addition, from June landlords in England will no longer be able to charge letting fees such as tenancy renewal or credit check fees.

Any such costs will now have to be met by the landlord. These reforms have come under a Conservative-led Government, so landlords should brace themselves for harsher treatment if Corbyn wins the next Election.

Sam Mitchell, chief executive of online estate agent House simple, says: ‘The net effect of these tax hikes is that we’ve seen a rise in the number of landlords selling up as the sector becomes less profitable, with more owners likely to head for the exit door if Labour introduced changes too quickly.’

Buy-to-let owners who are determined to stay put are cutting costs by remortgaging to cheaper loan deals. This gives them a degree of financial protection if interest rates rise in the future as a result of Corbyn’s mishandling of the economy.

Industry body UK Finance says the number of buy-to-let remortgages in January was at its highest level on record.

But those looking to remortgage should brace themselves for strict affordability tests. Lenders are now obliged to demand that rental income covers the mortgage interest by a factor of at least 1.25.

According to online mortgage broker Trussle, the best fixed rate loans for landlords include a twoyear deal priced at 1.98 per cent from Virgin Money and a fiveyear rate at 2.5 per cent with the Post Office.