Tuesday 04 July 2023
RICS recently released their May 2023 UK Residential Market Survey & there are some interesting correlations.
The first graph on the left (below text) shows the number of new landlord instructions. Since mid-2016, generally speaking, new landlord instructions have been falling. It’s no surprise as since 2015, and the UK government have been making it less appealing to those wanting to become landlords with numerous tax changes.
2015 – Chancellor George Osborne announces a 3% stamp duty surcharge on all buy-to-let property purchases. Plans to phase out tax relief on buy-to-let rental income for higher and additional rate tax-payers over 5 years. Landlords will have to pay tax on their rental income rather than profits as a result.
2017 – The Bank of England tells lenders to require much higher rent-to-income ratios before approving buy-to-let mortgages.
2019 – Capital gains tax applied to accidental landlords who sell more than 9 months after moving out of their previous home.
2021 – All tax relief withdrawn for landlords as the 5-year phase-out ends.
