Is buy-to-let still worth the bother?

A number of recent changes have hit buy-to-let properties. So is it still worth the bother for would-be landlords. Sarah Moore investigates.

Going into buy-to-let investing has become a far less appealing prospect than it once was. From April this year, buyers of second homes (whether for buy-to-let purposes or not) will be hit with a 3% increase in stamp duty. Tax relief on mortgage interest is also being phased out gradually soon buy-to-let landlords will no longer be able to deduct the cost of interest as a business expense and will instead receive a tax credit equivalent to 20% of interest cost.

These changes bite into potential returns at a time when many properties are hardly trading at bargain levels and so should make current and potential landlords reconsider whether or not it's worth the hassle.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.