Will furnished lettings be a thing of the past?

Mrs_pbradley936

Does anybody have an opinion on the latest changed to the wear and tear allowance and if that will lead to mostly unfurnished lets?

Landlords are losing their 10% allowance (as well as tax relief on interest paid on buy to let). I wondered if that would mean landlords not being keen on furnished lets anymore.

Plus I suspect that poorer people would be worse of if unfurnished is more attractive to landlords because they will have to folk out for beds, table, chairs, sofa, fridge etc. What is the average cost of a furnished let compared to an unfurnished let?

Mallotum_X

Landlords will be able to claim the replacement cost of anything they need to replace.

If the local market wants furnished lets, there will still be a provider.

HappyMJ

Mrs_pbradley936 wrote: »

Does anybody and an opinion on the latest changed to the wear and tear allowance and if that will lead to mostly unfurnished lets?

Landlords are losing their 10% allowance (as well as tax relief on interest paid on buy to let). I wondered if that would mean landlords not being keen on furnished lets anymore.

Plus I suspect that poorer people would be worse of if unfurnished is more attractive to landlords because they will have to folk out for beds, table, chairs, sofa, fridge etc. What is the average cost of a furnished let compared to an unfurnished let?

Just a guess but I'd say about £50 a month on a £500 monthly rent. Unfurnished being £450 per month. All they've really done is changed it to actual expenses incurred rather than just claiming £50 without receipts.

A furnished property couldn't deduct those expenses as they had a 10% W&T allowance. Now they can. A new bed every few years...that's fine put it down as an expense. Might make landlords want to provide better quality longer lasting furnishings...then again it might not.

Innys1

In future, I will only offer unfurnished lets. The cost and aggro of providing, maintaining and replacing furniture is simply too much. The extra rent I would receive doesn't make it worthwhile.

I wouldn't be surprised if unfurnished lets become more common, especially in areas where demand for lets, of any type, is strong.

ClaireD85

If there is strong demand someone will provide it.

I always thought finished places were either high end or flee pits. If you are really that broke it makes a difference then use free cycle instead.

PasturesNew

While some level of furnishing is desirable - the downside is that you usually get the LL's tatty leftovers and remnants.

So, if everywhere's unfurnished then renters will live.... you don't have to have solid furniture - hanging rails and canvas wardrobes, airbeds and beanbags suffice.

A mini oven and a cheap/2nd hand fridge.

Job done.

kinger101

Mrs_pbradley936 wrote: »

Plus I suspect that poorer people would be worse of if unfurnished is more attractive to landlords because they will have to folk out for beds, table, chairs, sofa, fridge etc. What is the average cost of a furnished let compared to an unfurnished let?

I suspect they'll be better off. Instead of paying a £100 a month premium for some crap the LL fished out of a skip, they'll be able to get their own stuff from e-bay/freecycle/gumtree/same skip. At the very bottom end of the market, I'd be surprised if the LL has spent anymore than £100 each room.

POPPYOSCAR

Just a small point, landlords are not losing tax relief on interest on buy to let, it is being capped at 20%.

MJ12

POPPYOSCAR wrote: »

Just a small point, landlords are not losing tax relief on interest on buy to let, it is being capped at 20%.

Your small point is off topic, but since you made it, I would point out that the big fusses about interest on buy to let is on making a tax exemption on an allowable expense into a tax relieve and then reducing it. If one gets taxed before expenses, one can be taxed to make a loss. You are right however that the remaining 20% is a silver lining.

POPPYOSCAR

MJ12 wrote: »

Your small point is off topic, but since you made it, I would point out that the big fusses about interest on buy to let is on making a tax exemption on an allowable expense into a tax relieve and then reducing it. If one gets taxed before expenses, one can be taxed to make a loss. You are right however that the remaining 20% is a silver lining.

Not off topic at all.


Very relevant to the debate as some might think that landlords no longer get any tax relief which if was the case could change the situation dramatically for some.