Taxation of property

Property Outlook

The property outlook for 2024 is somewhat better than it was a year ago. Rents remain high, mortgage costs should continue to fall following the reduction in the rate of inflation to 3.4% (February 2024), and the extension of the mortgage guarantee scheme until 30 June 2025 will help support property prices at the lower end of the market. Property prices generally are now moving upwards again, after a muted 2023. Although further regulation – in the form of the Renters Reform Bill – is on the cards, it now looks as if some key components of the Bill will be watered down. The government has also backtracked over the introduction of energy performance targets for landlords.

In Scotland, the temporary rent cap and a moratorium on evictions came to an end on 31 March 2024. The Scottish government is now planning to introduce legislation which will include a permanent system of rent controls. The Welsh government has also consulted on possible rent controls.

Overall, anyone looking to enter the buy-to-let market as a new landlord should be able to do so with some optimism. Keep in mind, however, that the situation could quickly change with a general election having to be called by January 2025 at the latest.