{"id":5933,"date":"2022-06-29T14:22:50","date_gmt":"2022-06-29T13:22:50","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=5933"},"modified":"2025-09-10T17:10:07","modified_gmt":"2025-09-10T16:10:07","slug":"7-reasons-landlords-are-switching-to-holiday-lets","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/7-reasons-landlords-are-switching-to-holiday-lets\/","title":{"rendered":"It no longer pays to be a landlord… or does it?"},"content":{"rendered":"\n

Rumour is that it no longer pays to be a landlord… There are almost 5.5 million buy-to-let properties (and rising) in the UK. But this number is at risk from the rising popularity of short-term and holiday lets. Could we see a rental property crisis as a result? <\/p>\n\n\n\n

So, what\u2019s happening?<\/strong><\/h2>\n\n\n\n

Research carried out by ARLA Propertymark<\/a> on UK landlords found that landlords of 230,000 properties in the UK (4% of the whole residential rental market) were \u201cvery likely\u201d to switch to short-term lets. Those accounting for a further 470,000 properties (almost 9%) said that they were \u201cfairly likely\u201d to switch. <\/p>\n\n\n\n

We\u2019ve put together 8 probable, but big, reasons why it no longer pays to be a landlord:<\/p>\n\n\n\n

1. Reduced tax relief on mortgage interest<\/strong><\/h2>\n\n\n\n

Once upon a time, buy-to-let properties were not only a big money maker but they afforded UK landlords tax reliefs that made their property businesses exceedingly lucrative.<\/p>\n\n\n\n

Borrowing money through mortgages was no longer as advantageous. Before, you could deduct your mortgage interest payments from your tax bill. This meant that you were only taxed on your profits (i.e. what you earned in rent minus what you paid for the mortgage). From 2017, this allowance was gradually reduced. <\/p>\n\n\n<\/div> \n\n

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In the 2025\/26 tax year, landlords can claim a 20% tax relief<\/strong> on whichever of the following costs is lowest \ud83d\udc47<\/span><\/p>\n