The Financial Times has run an article asking ‘ Can you still make money from UK property?’

It can be seen here, and the Key Points from the FT Article: The Buy-to-Let Crunch (2024–2025):

Declining Profitability

• Rising mortgage rates are drastically reducing profits — in some cases flipping modest profits into annual losses.

• Many landlords are still on older fixed-rate deals and will see a major shock upon remortgaging (e.g., Phil Rosenberg expects a £1,000 profit to become a £2,500 loss).

• Over 50% of landlords earn under £10,000 profit, according to Ipsos for HMRC.

Investor Retreat

• Just 10% of properties bought between January and April 2025 were by landlords — the lowest level since 2007.

• 1 in 4 landlords plans to sell at least one property within a year.

• The market is seeing record low investor activity as regulatory, tax and operational pressures mount.

Cost Pressures

• Energy performance upgrades (EPC C by 2028/2030) expected to cost up to £12,000 per property.

• Rising repair costs, planning delays, and licensing hurdles are discouraging expansion.

• Some landlords feel like “unpaid immigration officers” due to Right to Rent checks.

Incorporated vs. Unincorporated

• Limited company landlords (e.g., Harry Osborne) benefit from mortgage interest relief but are still being squeezed by higher:

  • Build and labour costs (up 50–100%)

  • Planning red tape (e.g., 7-month delays)

  • Licensing delays for HMOs

• Unincorporated landlords (typically owning fewer properties) are being hit the hardest:

  • No tax relief on mortgage interest

  • Can’t afford to incorporate due to stamp duty surcharges

  • Often “accidental” landlords (inheritance, former home)

  • No economies of scale

Shifting Strategies

• Mixed-use investments (e.g., shop + flat) offer:

  • Lower stamp duty

  • Dual income streams

  • Higher yields (e.g., 9% after costs)

• Some are flipping rather than letting — buying, renovating, and selling — though even that’s hindered by a sluggish sales market.

Exit Planning & Inheritance Concerns

• Landlords are selling due to:

  • Rising capital gains tax

  • Inheritance tax concerns (pension changes, loss of property relief)

  • Desire not to burden children with complex portfolios

• As Simon Davis put it: “The investment has run its course.”

Implications for Letting Agents & Trainers

• Letting agent training should now strongly emphasise:

  • Navigating EPC changes

  • Helping landlords reassess yield, financing, and structure

  • Understanding the Renters’ Reform Bill implications

  • Supporting accidental landlords with exit planning

  • Advising on incorporation and mixed-use alternatives

• Landlord support programmes could focus on:

  • Tax planning and ownership structure advice

  • Retrofitting and energy efficiency strategy

  • Navigating compliance (Right to Rent, safety checks)

  • Risk mitigation and tenant management