Come back buy-to-letters, all is forgiven

The government is winning its war against small private buy-to-let landlords. But who benefits?

George Osborne started the war against landlords © Getty Images
(Image credit: 2012 Getty Images)

Rewind a few years and buy-to-let landlords were being blamed for just about everything that was wrong with the country. Greedy investors were driving first-time-buyers out of the market. They were pushing up house prices. And they were ripping off all the people pushed into renting with rip-off charges and fees. Hundreds of thousands of investors, driven by decent returns that no longer seemed available anywhere else, had piled into the sector, but no one had a good word to say about them.

Then the fightback began, starting with George Osborne, and with plenty of help from chancellors since. First, buy-to-letters were stopped from deducting mortgage interest from the rent they received, unlike any other business, unless they decided to put their properties into a company. Then they faced an extra 3% of stamp duty. On top of that, there was a whole raft of new regulations, such as banning letting fees, and tightening up the rules on deposits. It was made far, far tougher to be a small, private landlord – and a lot less profitable.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.