Taxation of property

PROPERTY OUTLOOK

For anyone looking to enter the buy-to let market as a new landlord, the decision is currently far from straightforward. On the plus side:

  • Average English rents increased by 7.1% over the year to May 2025, with the average monthly rental now standing at £1,394;
  • Average UK house prices rose by 3.5% for over the year to April 2025, with a similar level of price increases expected to continue throughout 2025; and
  • Mortgage costs have seen some cuts this year, and interest rates are generally expected to fall further throughout 2025.

On the negative side, the stamp duty land tax (SDLT) cost has recently increased by £2,500 for most buy-to-let property purchases in England or Northern Ireland.

The Government is also in the process of legislating for a Renters’ Rights Bill. This will overhaul the private rental sector in England, and, in particular, abolish no-fault evictions and give tenants the power to challenge rent increases.

Separate, Scottish Government is looking at introducing rent controls.

Please note that all examples included in this guide are fictitious.

The Guide covers the following topics:

  • Buying a property 
    The tax implications of buying a property, as an individual or a company.
  • Renting a property 
    How to make the most of available tax reductions and reliefs for landlords.
  • Selling a property
    Tax efficient ways to handle the sale of your properties.
  • Other ways to let your property
    Taking in a lodger, short-term lettings, holiday rentals and commercial properties.

Click here to download your copy of ‘Taxation of property’.

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This publication is for general information and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority (FCA) does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of the law and HM Revenue & Customs practice as at 16 July 2025.