Labour sounds death knell for buy-to-let plans

INVESTING in a buy-to-let property has been a brilliant way for pensioners to bolster their retirement income since the first mortgages appeared in 1996, but becoming an amateur landlord isn’t as rewarding as it used to be.

- By Harvey Jones

Buy-to-let landlords have been under constant tax and regulatory attack for the last decade, which has squeezed profits while upping the workload.

The Conservatives cut mortgage interest relief to a flat 20% rate for everyone regardless of income, introduced a 3% stamp duty surcharge on purchases and reduced wear-and-tear allowances.

Now, Labour is turning up the pressure. In last year’s Budget, Chancellor Rachel Reeves hiked the second home surcharge to 5% and hiked capital gains tax to a maximum of 24% — Labour's upcoming Renters’ Rights Bill will make life even harder.

This is expected to abolish no-fault evictions, ban bidding wars, limit rent hikes to once a year and enforce higher quality standards on properties.