In recent years, buy-to-let landlords have faced a tax change: they now pay standard rate tax on rental income, irrespective of mortgage costs, unlike before when tax was applied only to profits.

Additionally, in April 2024, the Capital Gains Tax allowance decreased further to £3,000, down from £6,000 in April 2023, as per the Autumn Statement 2022. This tax applies to property sale profits not used as primary residences, due within 60 days of completion.

Many landlords are contemplating the future, particularly regarding remortgaging. With fluctuating base rates, they risk higher monthly mortgage payments and may consider selling before that happens.

Nevertheless, property historically appreciates over time. In 1980, the average house sale value was £19,773. By 2024, it surpassed £280,000 (per HM Land Registry). Such returns would please any investor, regardless of the most recent tax changes and elevated mortgage repayments.

While past performance doesn’t guarantee future results, the property market has shown long-term resilience, which might alleviate concerns.