It’s not clear to me whether this tax would lead to rent hikes or to shrink the renting market. Should I be worried as a potential tenant?
Likely both. Landlords will not swallow it, of course. Pass on to the tenant is the only other option.
Most will use it as an excuse ti increase profit. As there, administrative/accounting cost go up as well.
Those costs, any fears will also remover many small time single property rentals from the market. Although, potential increases in the taxes related to selling houses may limit that as well. Depends on the actual implementation.
ATM it is just the press guessing anything that gets clicks,
Definitely rent hikes.
Yes, yes and yes.
Rents wouldn’t go up in general, because the rental market is driven by wages, not by landlords’ costs. Landlords already charge as much as the market can bear.
If there’s a negative consequence, it would be on the supply side. If letting becomes less profitable, then there’s less money for renovating and maintaining rental properties.
