DOWNLOAD: January 2025 Taxation of Property

UPDATED on January 2025

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 9.3% over the year to November 2024, with the average monthly rental now standing at £1,362;

  • Average UK house prices rose by 3.3% over the same period, with price increases expected to continue throughout 2025; and

  • Mortgage costs saw a certain amount of volatility throughout 2024, but interest rates are expected to fall over the longer term – especially if there are further reductions to the bank base rate.

On the negative side, the stamp duty land tax (SDLT) cost will increase by £2,500 from 1 April 2025 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, but a similar proposal considered by the Welsh government has been rejected.

Please note that all examples included in this guide are fictitious

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Andrew Heron