A Yeats white paper · July 2026
The Managed Decline of Buy-to-Let
How a decade of policy dismantled residential property investment for the individual — and what the same rulebook says about commercial property. By John O’Neill, Managing Director, Yeats. Every claim cited to a primary source.
10
Government interventions since 2016
£15,000 vs £2,000
Stamp duty on £250,000: rental flat vs commercial unit
47%
Top rate on property income from April 2027 — enacted
10 pages · free · no registration. Sources: HMRC, legislation.gov.uk, gov.uk policy papers, House of Commons Library, UK Finance, Hamptons, Zoopla.
What the paper documents
Section 24: taxed on income you never received
Mortgage interest relief restricted to a 20% credit — HMRC’s own worked example shows the change alone can push a landlord into higher-rate tax.
The buying penalty
£15,000 stamp duty on a £250,000 rental flat; £2,000 on the same money spent on a commercial unit.
The selling penalty
The CGT allowance cut 76% in two years, to £3,000 — with a 60-day reporting window.
The escape route closed
The furnished holiday lettings regime abolished from April 2025.
The operating regime
The Renters’ Rights Act in force since 1 May 2026: s21 abolished, all tenancies periodic, rent rises once a year.
The capital expenditure mandate
EPC C-equivalent required by 1 October 2030, with a £10,000 per-property cost cap.
Autumn Budget 2025
Property income taxed at its own higher rates — 22%, 42%, 47% — from April 2027, already enacted in Finance Act 2026.
The evidence of exit
A record 66,587 new buy-to-let companies in 2025 and 25% fewer rental homes than pre-pandemic — personal ownership is now the minority choice.
The same rulebook, read the other way
None of it applies to commercial property — and inside a SIPP, rent accrues free of income tax and disposals free of CGT, with the April 2027 pensions IHT change stated in full.
Go deeper
The rules the paper describes — SDLT at commercial rates, the SIPP’s 50% borrowing limit, purchase costs — are explained step by step in the complete guide and applied to any unit price by the calculator.
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Important: This guide is for general information only and does not constitute financial, tax, pension or investment advice. Pension and tax rules can change and their impact depends on individual circumstances. Any purchase through a SIPP is subject to your SIPP provider's approval. Always take independent financial advice before making pension decisions. Tax figures stated as at the 2026/27 tax year. This site is operated by Yeats.