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While the costs around owning property have undoubtedly increased, Davies said landlords who own their properties as limited companies and have wider, more diverse, income streams tend to be impacted to a lesser extent.

“Given the rapid cost increases, a reduction in profits over the next few years may well arise for some of these landlords, but as rents continue to increase, as is expected, and ultimately catch up with higher borrowing and management costs, the gains are likely to return and grow again too,” he said.

Do BTL landlords need government support?

Regulation around buy-to-let properties, Davies said, is a devolved issue and each part of the UK has slightly different requirements. However, he said the amount of regulation and cost involved in being a private landlord has increased considerably in recent years, wherever your assets are located.

“While there is unquestionably a positive intention behind this regulation and legislation, for many, the reality is somewhat different,” Davies added.

The side effect, Davies said, is landlords vacate and stock is sold, typically to owner occupiers, rental stocks reduces, availability is limited and rents increase.

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