A survey of over 600 UK landlords from Simply Business, one of the UK’s largest providers of small business and landlord insurance, has found one in three (33%) landlords saying that their properties are not as profitable as they once were due to the reduction of buy-to-let mortgage tax relief.
The mortgage interest tax relief landlords could claim was gradually reduced by 25% each year from April 2017 and reached zero in April 2020, when buy-to-let mortgage relief was replaced with a 20% tax credit. The 2021-22 tax year is the second full tax year in which landlords only get this credit.