The Intermediary – September 2025 - Flipbook - Page 22
BUY-TO-LET
In focus
Surviving the Gover
ith the next
Budget fast
approaching
this November,
uncertainty
continues to
ripple through the property sector.
Landlords and investors are le
navigating a landscape reshaped by a
series of Government curveballs over
the past 18 months.
Rising interest rates, tighter
regulations, and shiing tenant
expectations have le many landlords
questioning the viability of their
portfolios. On top of this, rumours are
swirling of what is to come next.
W
What will the Budget hold?
There is speculation that the
Government could scrap Stamp
Duty in the next Budget in favour of
a property tax. This could result in
homes valued at over £500,000 facing
an annual levy of 0.54% on the portion
above that threshold. The move would
mean a £650,000 property would
incur £810 annually, compared to a
one-off £22,500 Stamp Duty payment.
While second homes and buy-tolet properties may remain under
the current Stamp Duty regime,
other reforms such as Council Tax
restructuring and a possible ‘mansion
tax’ are also being discussed.
At the same time, landlords could
face new costs if National Insurance
20
The Intermediary | September 2025
contributions are applied to rental
income, with rates mirroring those
on earned income; 8% up to £50,270
and 2% above. This move, aimed at
aligning tax treatment of earned and
unearned income, could raise billions,
but risks discouraging investment and
reducing rental supply.
Additionally, the Government
is considering removing Capital
Gains Tax exemptions for primary
residences over £1.5m, potentially
affecting thousands of homeowners,
particularly in London and the South
East. This could make downsizing
less aractive for older homeowners
in large, expensive houses, causing a
slowing of the property market.
Regulatory reform is also on the
horizon for landlords, with the
proposed Renters’ Rights Bill set
to remove Section 21 evictions and
introduce stricter possession rules,
requiring landlords to be more
proactive in tenancy management.
Although immediate changes to
Energy Performance Certificate (EPC)
requirements have been paused, the
long-term goal of improving energy
efficiency by 2030 remains a key
consideration for property owners.
These add further problems to an
already troubled market. Relatively
high interest rates continue to drive
up borrowing costs and complicate
refinancing, especially for those
with larger portfolios or short-term
MICHELLE WALSH
is intermediary sales director
at Together
finance. Tax pressures remain a
concern, as Section 24 has limited
mortgage interest relief over the past
few years, and recent changes to
Capital Gains Tax and Stamp Duty
further impact profitability.
How can brokers help?
For brokers, this presents both a
challenge and an opportunity: to
provide informed, strategic guidance
that helps clients adapt and remain
resilient. In this environment, they
play a vital role in not just sourcing
finance, but in helping landlords
make informed decisions.
Portfolio diversification can be a
useful strategy. Traditional single-let
properties may no longer offer the
returns landlords need, especially in
