From MoneyWeek · · 2m
Landlords Quitting Buy-to-Let Market
Landlords are leaving buy-to-let as costs and rules rise, but opportunities remain for hands-on landlords.
In brief
Landlords are leaving buy-to-let as costs and rules rise, but opportunities remain for hands-on landlords. Landlords are exiting the buy-to-let market due to rising costs and regulatory changes, but professional landlords with strong tenant relationships can still profit. Originally reported by MoneyWeek.
Landlords leaving buy-to-let market
Landlords are leaving the market in their droves as factors squeeze the buy-to-let sector.
44,000 homes sold in three months
Around 44,000 buy-to-let homes were sold by landlords across the UK between July and mid-September.
60% unsure by 2027
60% of single property landlords are no longer sure they will be in the market by the end of 2027.
Rising costs and policy
Rising costs, government policy, and administrative burden are dampening the buy-to-let market.
Tax relief cuts
Landlords gradually lost tax relief on mortgage interest from 100% to 20% between 2017 and 2020.
Renters' Rights Act
The Renters' Rights Act makes eviction harder and requires landlords to allow pets.
Tax changes from 2027
Higher tax rates for property income will apply from April 2027: 22% basic, 42% higher, 47% additional.
Suzanne Smith's advice
Suzanne Smith says long-term lets build trust and avoid income gaps.
55% focus on tenant experience
55% of landlords spend more time thinking about tenant experience.
Holiday let opportunities
88% of mortgage brokers saw increased holiday let mortgage enquiries over the past year.
Investment comparison
A buy-to-let property bought for £154,927 in 2006 would be worth £191,619 after 20 years, versus £592,130 in equities.
Landlords as business
Landlords must treat property as a business to succeed with tenant service and repairs.
New EPC ratings by 2030
Landlords must ensure rental properties have an EPC rating of C or above by 2030.
Making Tax Digital
Landlords earning over £50,000 annually from rentals must use Making Tax Digital by 2027.
The short version
Landlords are exiting the buy-to-let market due to rising costs and regulatory changes, but professional landlords with strong tenant relationships can still profit.
