The i is reporting that the forthcoming budget could be the end of landlording for amateur landlords

The article can be read here, and says that the property market is seeing significant changes, especially for buy-to-let landlords, with the average landlord now approaching the age of 60. Younger individuals are increasingly unable to afford second properties due to financial challenges like high mortgage rates, lower house price growth, and regulatory changes. A forthcoming UK Budget might further intensify the shift, with Chancellor Rachel Reeves expected to raise Capital Gains Tax (CGT). This change could add between £6,000 and £16,000 to the tax burden when selling properties, especially for higher-rate taxpayers.

The expected tax increases make property investment less appealing to individuals compared to owning properties through companies, which face lower corporation tax rates. This shift has already been visible, as lending for buy-to-let properties dropped by 51.5% in a recent quarter, and landlords are buying fewer homes than they were a decade ago.

Other driving factors include high inflation, the fallout from Brexit, increasing regulations such as the abolition of Section 21, and stringent energy efficiency requirements. Landlords, especially non-professionals, are feeling squeezed, with about half of their rental income now going towards expenses such as mortgage payments, ground rent, and insurance.

Many experts believe that the future will see a more professionalized rental market, dominated by wealthier landlords or companies with larger portfolios who benefit from tax efficiencies. David Hollingworth, a mortgage expert, suggests that individuals renting out their first home after moving are becoming less common due to these economic pressures .