The new investment opportunities for landlords quitting the property market

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Landlords selling a property which is not their main residence will usually need to pay capital gains tax (CGT). Depending on your tax threshold, you will pay 18 per cent or 24…

Alex Greaves, 41, decided to quit being a landlord, instead choosing to pay off the mortgage on his family home.

Alex, who lives in London with his wife and their two children, purchased a one-bedroom flat in Fulham in 2007 for £270,000 as a long-term buy-to-let.

“I saw the flat as a clear investment opportunity. It was the trend to become a buy-to-landlord at the time. There were good yields to be made, it was tax efficient and mortgage rates were low”, Alex said.

Alex received around £1,600 a month in rent but being a landlord was not without its challenges.

“I’d get calls about maintenance problems and we paid for the flat to be renovated multiple times. It’s not a free lunch,” he said.

Alex, managing director of property buying agency Ridgestone Property, sold the flat in 2021. The mortgage rate was around 5 per cent when he bought but “significantly lower” in the years after.

He said: “I could see that more legislation was coming in and being talked about for landlords.

“But the big thing for me was the loss of tax efficiency. When I started, you could offset all mortgage interest from your profits, but that disappeared.

“We’d also bought our own family home in London, which came with a significant mortgage.”

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