In last year's Autumn Statement, landlords were penalised yet again with the introduction of a 3% Stamp Duty surcharge for additional residential properties.
It was thought that larger investors with more than 15 properties might be exempt from this policy over worries that it would deter investment in housing projects. But yesterday, George Osborne confirmed that all investors will be affected.
In addition, significant cuts to Capital Gains Tax have been introduced, but residential property sales from landlords are not included - yet another blow.
And while landlords are battered by higher costs, those renting out property online (for example, through Airbnb) are set to enjoy a £1,000 tax break.
On top of the changes to mortgage interest tax relief being phased in from April 2017, supply in the private rented sector could be significantly squeezed as landlords exit the sector.
Steve Bolton, Founder and Chairman of Platinum Property Partners, commented: "The business of providing somewhere to live for the UK rental population is clearly not valued by the Government, despite the fact that rental demand is at an all-time high.
"Yes, the route to homeownership needs to be made easier for first-time buyers. But attacking landlords and forcing them to increase rents or constrict supply of rental properties will do nothing to achieve this and only make things harder for tenants.
"Despite all this, property still remains the best performing asset class. But it's becoming more important than ever for landlords to stress-test their investment strategy against market fluctuations and potential tax and legislation changes. We are fortunate enough to have a strong network of property professionals at PPP who all help each other to be successful and overcome challenges.
"I am currently co-leading a legal challenge with the aim of overturning the unjust and unlawful changes to mortgage interest tax relief and we expect to receive a response from the Government imminently."
