The recent “Mail on Sunday” report on the buy-to-let sector emphasizes the challenges landlords currently face due to rising costs and stricter regulations. The buy-to-let market has entered a period of stagnation, driven by high interest rates, reduced tax relief, and legislative changes. Key factors such as the additional stamp duty on second properties and the reduction in mortgage interest tax relief have severely impacted profitability for landlords​ (Molo Finance)​ (moneyweekuk).

The volume of new buy-to-let loans has halved, reflecting landlords selling off properties and potential investors staying away. Despite rising rents, the increased cost of borrowing has made it difficult for many landlords to turn a profit, with mortgage arrears soaring by 93% over the past year​ (moneyweekuk).

As the government prepares to abolish Section 21 evictions, landlords are growing more cautious, fearing more constraints on their ability to manage properties. While some landlords may benefit from higher rents during peak rental seasons, the overall outlook remains uncertain, with further declines in mortgage lending predicted​ (moneyweekuk).