UK Landlords Adjust Plans Amid Tax Changes

UK Finance has reported that there are currently 8,392,000 residential mortgages in the UK, with 1.8 million fixed-rate deals set to expire next year. Tracker mortgages average £139,124 at an interest rate of 6.44%, while Standard Variable Rate (SVR) mortgages average £82,438 at 7.01%. As the Bank of England prepares for a decision on interest rates, changes could affect monthly payments for these mortgages by approximately £28.98 or £17.17 depending on the direction of the Bank Rate. Meanwhile, landlords expressed relief after the government did not implement a threatened increase in capital gains tax, with 84% planning to remain in the buy-to-let sector, though a 2% increase in Stamp Duty Land Tax (SDLT) on second homes has led many to reconsider their investment strategies. The SDLT hike will affect homebuyers in 99% of local authorities in England starting in April, where the majority will see costs rise by £2,500, impacting existing buyers more than first-time buyers. Overall, the current economic landscape reflects significant adjustments for both mortgage holders and property investors amid changing tax policies.