2B or Not 2B? That is the question - for landlords
Wednesday 12th November 2025
I had hoped to be writing a succinct and positive guide to the ‘Renters Wrongs Act’ which has just received Royal Assent in Parliament and will probably be implemented in the second quarter of 2026. The Govt. has yet to put a timetable to it despite months of tortuous run up.
However, it is too complicated to explain in a brief article.
Suffice to say, there is very little positive within it for landlords, or indeed even for tenants.
Government argues tenants will be advantaged by it being more difficult for landlords to regain possession of their property.
As a consequence, private landlords, usually the nice ones in our experience, are exiting the market in droves.
The idea is that company landlords will fill the void but in Central London corporates do not generally buy individual homes, and there are zero sites where it makes financial sense to ‘build to rent’.
So, for the private landlord, the question is 2B or not 2B?
The shortage of rental stock means rents have risen rapidly, and whilst plateauing as I write because we have reached an affordability threshold, will not go down as supply dwindles.
Higher yields can be achieved but will they beat having the cash in National Savings Bonds or even the stock market?
Traditionally, private landlords’ longer-term goal was capital gain. Is there still potential for that now?
Hard to say.
In prime Central London prices have gone sideways between 2015 – 2022 and subsequently dropped by 20% or so because of higher interest rates and lack of foreign demand.
We need to have hit the bottom of the market before an upward trajectory is possible and Rachel has yet to do her worst, so we will see.
If you have a mortgage and are a 40 or 45% (for now) taxpayer, since the withdrawal of the ability to offset interest before tax, it is nigh on impossible to break even, let alone make a profit.
Many landlords have sold or are (rightly in my view) considering it.
There are nuances.
CGT can be a factor for UK-based landlords who have owned for a long time. Non-resident landlords need not worry about CGT as they are benchmarked at April 2015 prices and the values are lower today.
Doing nothing is an option but only after careful analysis.
Seeking my advice now is important.
Whilst I say it myself, I am regularly complimented on my holistic approach. I cannot give legal or financial advice but can give you pointers which you can then verify with your other, more costly, advisors.
Give me a call on 020 7352 9556 or email me on patrick@stanleypropertylondon.co.uk
Here 2B of help…
PB
P.S If you’re a tenant struggling with anything relating to the ‘Renters Wrongs Act’ do also feel free to contact me.
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