More landlords in Cardiff are letting their properties as short-term holiday lets, making them no longer available for long-term renting, following tax changes from the Government.
The Residential Landlords Association’s (RLA’s) research facility, PEARL, has found that the number of Airbnb listings has soared by a whopping 259% in Cardiff alone over the past year.
This suggests that almost one in five homes to let in Cardiff are now being offered through short-term holiday let websites, such as Airbnb.
Previous research from RLA PEARL shows that, of those landlords now offering short-term lets, over one in three are doing so because of tax increases on landlords. These include a reduction in mortgage interest tax relief and private landlords being taxed on their income, rather than their profit – unlike any other business. These changes do not apply to those letting properties as short-term lets.
One landlord who has made the move to holiday lets explains why they did so: “I didn’t want to do this, but the tax changes have forced me down this route. Selling is not an option due to CGT [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.”
The RLA is calling on the Government to scrap the changes to mortgage interest tax relief, which are hitting the majority of landlords providing good housing, and who Wales – especially Cardiff – needs to encourage to invest in more homes to let.
Douglas Haig, the Vice-Chair of the RLA and Director for Wales, says: “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 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.”
Have you made the move to short-term lets due to the Government’s tax changes?