The number of buy-to-let properties bought by landlords during the past 12 months has dropped by 14%, official HMRC figures reveal

They show that during 2023/2024 tax year some 193,700 properties were bought by landlords compared to 224,700 during the 12 months before that.

This supports the argument that, while the ‘hostile environment’ that the Tories initiated for landlords including fewer tax breaks and greater regulation has not prompted landlords to leave the sector in significantly greater numbers than usual, the additional 3% stamp duty introduced in 2106 - plus higher mortgage costs - have seen fewer people joining the sector.

The list of benefits that landlords used to enjoy but that were rolled back during the Tory years include being able to claim tax relief on mortgage interest costs; being able to claim a set amount for ‘wear and tear’; capital gains benefits from measures such as Private Residence Relief as well as the 3% additional stamp duty.

Commenting on the figures, Andy Noton (pictured)of accountancy firm Lubbok Fine says: “We’ve seen a marked decrease in purchase activity for rental properties.

“Concerns that the new Government will increase CGT at the next Budget or add to the red tape for landlords is encouraging more landlords to exit the market and fewer to buy.

“However, a continued fall in mortgage rates could change all that. Rents have continued to climb so a reduction in finance costs could suddenly improve the economics for landlords.”

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