Taxation of property
Property Outlook
For anyone looking to enter the buy-to let market as a new landlord, the decision is currently far from straightforward. On the plus side:
- Average English rents increased by 8.3% over the year to February 2025, with the average monthly rental now standing at £1,381;
- Average UK house prices rose by 4.9% in the year to October 2024, with price increases expected to continue throughout 2025; and
- Mortgage costs have seen some cuts this year, and interest rates are generally expected to fall further throughout 2025.
On the negative side, the stamp duty land tax (SDLT) cost has recently increased by £í2,500 for most buy-to-let property purchases in England or Northern Ireland.
The government is also in the process of legislating for a Renters' Rights Bill. This will overhaul the private rental sector in England, and, in particular, abolish no-fault evictions and give tenants the power to challenge rent increases.
The Scottish government is is looking at introducing rent controls
