Taxation of property

Bricks and mortar

Becoming a landlord has been an attractive proposition for anyone who could raise a deposit, thanks to a prolonged period of low borrowing costs and generally rising property values. However, interest rates have finally started to rise (they are now the highest they have been for nearly a decade) and uncertainty in the housing market has reduced property prices, particularly across London and the south-East.

Despite these negatives, becoming a landlord may still be an appealing option given the perceived lack of good alternatives, with savings rates remaining low and restrictions on the amount that can be saved into a pension.

Recent tax changes, tighter lending rules and two bank base rate increases since November 2017 have had a negative impact on the buy-to-let market. This means that anyone thinking of becoming a landlord in future will need to carefully consider the pros and cons, especially when it comes to tax.