With the government cutting mortgage tax relief from 45% to 20% from 2017 to 2020, more than nine in 10 (92%) retirees said they were worried about the changes.
Three quarters (72%) of pensioners with an investment property say they would struggle to make ends meet if they didn’t have the income from their buy-to-let, a poll carried out by Responsible Equity Release has revealed.
With the government cutting mortgage tax relief from 45% to 20% from 2017 to 2020, more than nine in 10 (92%) retirees said they were worried about the changes.
Steve Wilkie, managing director, Responsible Equity Release, said: "For many pensioners, having a buy-to-let property has been a life saver in this low interest environment. While their savings have languished, earning very little interest, and pension income has been hit hard by falling share prices, property income has remained strong.
“Without the income boost from their buy-to-let, many would really be struggling to make ends meet. But the Chancellor has yet again ignored UK’s retirees when he announced changes to the way buy-to-let would be taxed.
“George Osborne was so focused on taxing the rich, he forgot that a new tax on buy-to-let won’t just hit the wealthy, it will also hit those honest, hard working people, who may have a single buy-to-let property, and were just hoping it would earn them a little extra income in retirement.”
