From today landlords are subject to a 3% stamp duty surcharge and the amount of mortgage tax relief they can claim will be cut from 45% to 20% from 2017 to 2020.
Kensington has launched a guide on buy-to-let changes.
From today landlords are subject to a 3% stamp duty surcharge and the amount of mortgage tax relief they can claim will be cut from 45% to 20% from 2017 to 2020.
The PRA has also proposed introducing stress test loans for five years or against a rate of at least 5.5%.
Steve Griffiths, head of sales and distribution at Kensington, said: “As an industry, we are still digesting the contents of the Prudential Regulation Authority’s consultation paper about underwriting standards in buy-to-let.
“But it is important to remember that today marks the beginning of a raft of changes already introduced recently by the government and this has the potential to cause confusion even amongst the most savvy of landlords.
“Moreover, given that some of the changes will be implemented over the course of a few years, keeping up with these developments can be difficult for landlords who may be juggling their day-to-day work with managing their buy-to-let properties.
“To help buyers understand these tax changes, Kensington is pleased to release this buy-to-let guide, which provides clear information about what landlords can expect. We hope that both mortgage advisers and their buy-to-let clients will find the guide useful and easy to understand.”
Landlords also face changes to the Wear and Tear Allowance, which will be replaced by a system that only allows them to claim tax relief when replacing furnishings.
