Illustration: Tim Alexander
The New Rules of Being a UK Landlord
The Renters’ Rights Bill marks the biggest shake-up for UK landlords and buy-to-let investors in decades.
The UK rental market is entering a period of upheaval. For decades, buy-to-let properties were considered a reliable — and often lucrative — investment. Post-Great Recession interest rates fell below 1%, house prices climbed, mortgage interest on rental homes was tax deductible and stamp duty, the UK’s property sales tax, was lower.
That landscape has shifted. House prices have seen little growth, with figures released in October even showing a slight fall of 0.1% year-on-year. On top of that, tax relief for landlords on interest has disappeared and, as of October 2024, stamp duty on non-primary residences was hiked from 3% to 5% of the sale price.