Landlord taxation in the UK is no longer a background consideration. It is one of the primary forces reshaping investor behaviour and portfolio structure.
The most significant pressure points remain:
- Mortgage Interest Relief restrictions, which continue to penalise highly leveraged personal ownership.
- Income tax drag on higher-rate taxpayers, particularly those holding multiple properties.
- Increased use of limited company structures, driven by more favourable interest deductibility and retained profits.
As a result, we are seeing a clear bifurcation in the market:
• Smaller landlords are exiting or deleveraging
• Professional operators are restructuring, incorporating, or consolidating
Tax is now influencing what investors buy, where they buy, and how they hold assets. Yield alone is no longer sufficient; post-tax returns are the true measure of performance.
At DXXV, we assess opportunities through a tax-aware lens, ensuring sourcing decisions align with long-term efficiency rather than short-term gross yield illusion.