Buy-to-let tax changes: The investor’s guide to changes happening in April 2017


More than two years ago, the Government announced a series of changes to the buy-to-let industry in the hopes to reduce the sector’s attractivity to investors and tackle the housing crisis all in one.

Whilst some of these announced changes have already been implemented to their fullest, others are just about to be phased in.

The announced changes are:

  • 3% stamp duty tax hikes (came into effect in April 2016)
  • Reform to 10% wear and tear allowance (landlords have to give proof of any repairs to receive reductions)
  • Cut to mortgage tax relief (from 45% down to 20%, phased in over the next three years)

On Saturday, April 1st, the phasing in of mortgage tax relief has officially begun. This means, property investors who used to be able to deduct costs they incurred from their payable tax at a rate of 45% will be pushed down to the standard rate of 20% by 2020.

What this means in detail is that landlord will no longer be able to offset the full cost of their mortgage.

Additionally, the Government has decided to grant the Bank of England extra powers in overseeing the buy-to-let sector. Considering the new rules and regulations that may be phased in through this, it may become far more difficult for individuals to secure the mount of funding they would need for their next investment.

What about build-to-rent?

Whilst buy-to-let appears to be doomed an outdated, non-beneficial system by the Government, build-to-rent is here to stay.

The Government proved once again its support for the up and coming sector in its latest Housing White Paper. Build-to-rent is a sector that’s growing fast and wide. Due to the simple fact that it is offering what people want, purpose-built, central and outstanding accommodation, many see this market as the new way forward.

Property will continue to remain one of Britain’s most attractive asset classes, it may only be the kind of property, that will change.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Buy-to-let tax changes: The investor’s guide to changes happening in April 2017

Buy-to-let tax changes: The investor’s guide to changes happening in April 2017


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.