Rental growth has dropped to its lowest level in two and a half years, according to recent research, marking a significant downturn for landlords already grappling with a series of financial challenges.
The deceleration in rental increases is attributed to weakening tenant demand coupled with rising affordability constraints. This latest development compounds the difficulties faced by property investors, who have seen a string of unfavorable tax changes in recent years.
Landlords now confront higher stamp duty charges on property purchases, and mortgage interest relief has been curtailed to the basic rate of tax. Additionally, those looking to divest their properties are contending with reduced capital gains tax allowances.
These measures have collectively dampened the appeal of buy-to-let investments, further squeezing returns for landlords amid a sluggish rental market.