Concerns rent prices in Leeds could rise due to new landlord tax

A new tax regulation takes effect from today and means landlords will only be allowed to claim 20% of their tax relief, compared to the 45% they can claim now.

Some housing experts believe a large number of landlords will raise rent prices for the money they lose to tax.

But new research has revealed almost 9 in 10 people in Yorkshire are unaware of the new tax relief rules being introduced, and the effects it could have upon them.

Cheryl Doherty currently rents a flat in Yorkshire, she says:

"Some weeks I'm working 65 hours just to live. So if it goes up again, what am I going to have to do then - I'm going to have to work more hours to subside this rent."

"If it does go up, I'd have to consider possibly getting a bedsit or even smaller like a masonette. Even just the £20 that could go on electric - if it goes up by that little it could have a big impact."

"Living on your own, trying to survive, and that's the first thing that comes out of your money before you've even looked at your wage - it's a lot of money for a flat."

A spokesperson from HM Treasury told Radio Aire: "It is estimated that only 1 in 5 landlords will pay more tax as a result of this change. Given the small proportion of the housing market affected, we do not expect a significant impact on rent levels or house prices.

The Office for Budget Responsibility (OBR) also expect the impact on the housing market will be small."