Landlords face ongoing tax changes that impact profitability, mortgage affordability, and rental yields. In 2025, key tax adjustments will affect how landlords manage their portfolios, making it crucial to stay informed. 

Key tax updates for landlords 

Changes to Capital Gains Tax (CGT) and mortgage interest relief are set to impact buy-to-let investors. Lower CGT allowances mean landlords may face higher tax bills when selling rental properties. Additionally, restrictions on mortgage interest deductions continue to limit tax relief, affecting overall rental income. 

Impact on rental market trends 

Higher tax obligations could lead some landlords to reconsider their investments, potentially reducing rental stock. However, with rental demand remaining high, well-prepared landlords can still achieve strong yields by optimising their portfolios and adapting to market conditions. 

Planning ahead for tax efficiency 

Understanding these tax changes is crucial for landlords looking to maximise returns. If you’re a property investor, speak to our team for expert tax guidance and portfolio advice.