Residential landlords have faced challenging conditions since April 2017, facing a higher tax burden due to changes in how they declare their rental income. Prior to this change, landlords would only pay income tax on their rental income net of mortgage interest and other expenses incurred on the property. With most property investors using interest-only mortgages, this meant that it was possible for many landlords to deduct all of their mortgage costs from taxable rental income. New research shows that landlords with between 6 and 20 properties in their portfolios have increased their market share from 35% to 39%.
Tax changes start to bite for property investors
This 524 word blog post looks at changing trends for buy-to-let property investors following tax changes reducing the amount of mortgage interest that can be offset against rental income.