How to beat the new landlord tax & mortgage changes


Major new lending restrictions and tax changes won’t throw your investment strategy off course if you act now.

Ex-Chancellor George Osborne made no bones about wanting to deter landlords in favour of first-time buyers and, to that end, his policies have arguably been successful.

Buy-to-let purchase lending slumped 46% in the second quarter of 2016 after the 3% Stamp Duty surcharge was introduced, and it still hasn’t fully recovered.

It’s been a challenging few years for landlords, as a raft of measures targeting the private rental sector have been introduced by Government and regulators.

The Stamp Duty surcharge was a clear deterrent to portfolio expansion, Right to Rent checks added more paperwork and the tax relief changes are set to hit many landlords’ profits.

Osborne may be long gone from the Cabinet but the changes keep coming.

The latest tightening of buy-to-let mortgage lending rules, introduced just weeks ago, could affect your ability to raise finance on your existing properties, remortgage or get a new loan to grow your portfolio.

Time to thrive

The good news is that landlords are far from beaten by this slew of government policy.

Some may have delayed expanding their portfolio, others are moving into the perceived shelter of a limited company structure, and a small number have exited the sector.

But most are taking time to understand the new rules, adapting their strategy and thriving. That’s because, despite the challenges, landlords are currently supported by robust fundamentals that make investing in property highly attractive.

Rents are high, up 2.1% between August to September to a UK monthly average of £927, according to Homelet. Void periods are low, yields steady and tenant demand is outstripping supply.

Buy-to-let mortgage rates are now at an all-time low, with two-year fixed rates at 2.86%, and the number of products on offer at a post-credit crunch high, according to Moneyfacts.

There is still huge potential for those investing in property to let, but you can only win if you play by the new rules. Smart property investors do just that, by keeping up to date, adapting their long-term investment strategy and planning ahead.

Tax relief changes – what you need to know


otherChristina Hoghton has been writing about mortgages and property investment for 17 years, for magazines, newspapers, major lenders, challenger banks, trade bodies and brokers. After a stint in London working as an editor for a financial publisher she returned to Manchester, as a freelance writer and communications consultant. Christina also holds the mortgage adviser qualification, CeMAP. She’s a mum of three, Man City fan and, now she’s back up North, finally a homeowner.

Disclaimer Please note – This is not tax or mortgage advice, it is just a broad overview of the recent changes. Please consult a professional who can assist you with your personal circumstances and how these changes might effect you.

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

How to beat the new landlord tax & mortgage changes

How to beat the new landlord tax & mortgage changes


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.