Landlords – Is it all Uphill?

Landlords have been hit hard over the last few years, from both Budget taxes and Regulatory changes.

Whilst landlords may be happy that the floated idea of charging National Insurance on their rental income didn’t come to fruition back in November, but other initiatives did.

One example is that the rate of income tax from property income will increase by two percentage points from April 2027.

It’s a move that the Office for Budget Responsibility (OBR) said will hit landlords in the pocket and force rents up.

This comes on top of previous initiatives from the Government, such as changes to Mortgage Interest Relief, and increasing Stamp Duty charges.

The culmination of all of this, may mean that some landlords might consider leaving the marketplace, which will simply further fuel the demand for rental properties. Those remaining, may adapt in numerous ways, and are monitoring (or already responding to) developments such as the Renters’ Rights Act – which will start coming into force from 1 May 2026 – and future EPC targets.

Also, the continuous tax hits, will probably make more landlords, who own the property in their own name, consider the Limited Company route. Additionally, it may also drive some landlords to consider alternative strategies, to secure higher-yield tenancies, such as student rentals, or Houses in Multiple Occupation (HMOs).

Limited Company Status

A reflection of the adaptability of landlords is the sizeable growth in those opting for Limited Company status, with almost 450,000 companies now in play.
(Source: Hamptons report, February 2026)

Hamptons estimate that around 75% of all new buy-to-let purchases go into a company structure.

The higher-rate taxpayers have been particularly motivated by it, as the regulatory rules limit the mortgage finance that you could offset against your individual income. The Limited Company route may help mitigate those tax changes.

However, it won’t be the most suitable option for all, so do speak to your accountant and solicitor regarding tax issues, and property structures.

We’re here for YOU…

Whatever route you plan to take, we can be there for you. And, on the upside, buy-to-let loan deals have become cheaper in recent months. For example, the average buy-to-let rate on a 2-year fix stands at 5.47%. Back in July 2023, the average rate hit a recent high of 6.97%.
(Source: moneyfactscompare.co.uk, 7 April 2026)

So, if you’re coming off a fixed rate deal, or simply want to have a chat about future financing options, then please do get in touch.

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your property may be repossessed if you do not keep up repayments on your mortgage.