New landlord tax rules launched by HMRC

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This is Chubby Wallet. The newsletter that makes you smarter about the world of property…

Here's what’s in store..

• The Single-Family Home (SFH) Boom

• Uk house price index summary (March 2025)

• Tax goes digital for landlords

• Seller profits drop below £100k

• The basketballer that turned into a £14b investor

The single-family home (SFH) boom

The real estate market is changing fast…

Forget crowded city-centre apartments; investors are now racing to buy suburban single-family homes (SFHs) just like it was during the pandemic..

With ~ £2.5 billion invested into purpose-built rental homes in 2024, SFH has gone from niche to mainstream, making up 6.3% of all UK real estate investment—up from 0.9% just two years ago.

But why the sudden gold rush?

According to Savills, investors are moving from urban multifamily blocks to suburban houses, and here’s why:

• Rental demand is skyrocketing – 69% of UK local authorities saw homes let faster in 2024 than pre-pandemic. Families want space, schools, and stability—not tiny flats.

• Rents are rising faster than house prices – In 99% of local authorities, rents grew faster than property values over the last three years. This means better yields for landlords.

• Big money is flooding in – Pension funds like Canada’s CPP and Korea’s NPS are pouring hundreds of millions into UK SFH, betting on long-term growth.

Funds are flowing into smart homes

Investors aren’t just buying any old houses—they want homes built for renters.

Think:

• Smaller but smarter layouts – No wasted space, but packed with heat pumps, EV chargers, and solar panels to cut energy bills.

• Community-first amenities – Forget fancy gyms; suburban renters want play parks, shared car clubs, and

• Library of Things (e.g. where renters can borrow equipment like lawnmowers).

• Future-proofing with tech – Keyless entry, smart thermostats, and even AI-powered energy savings (hello, lower bills).

And with the 2025 Future Homes Standard coming online, builders who prioritise sustainability now will avoid costly retrofits later.

The road ahead

No market is without its risks. Cost of capital could squeeze some investors if interest rates stay static, and affordability pressures might slow rental growth if the economy goes into a recession.

But the bigger picture remains bright:

• Housebuilders are adapting – Many now have dedicated rental arms, selling whole developments to investors upfront.

• Suburban rents have room to grow – With supply still tight, well-located SFH schemes will keep attracting tenants.

• Institutional capital is here to stay – This isn’t a temporary trend it’s a structural shift in how UK housing is funded.

Final thoughts

The SFH boom is more than a trend—it’s changing the face of the rental market.

• For investors, it offers strong yields and long-term demand.

• For renters, it means better-quality homes in family-friendly areas.

• And for developers? A golden opportunity to partner with big institutional buyers.

The UK housing market is slowing down...

According to Zoopla Research, annual price growth has slowed to 1.8% (Feb 2025), as new listings (+11% YoY) gives buyers the upper hand.

But the story is different depending on where you are in the country..

South vs. north

London and the South are feeling the squeeze:

• Listings are up, but sales growth can’t keep pace: Result? Price inflation is ≤1% in London, the South East, and South West.

• Stamp duty "hangover": A pre-April rush to beat higher taxes drained demand, especially for first-time buyers (FTBs). London FTB demand is down 15% YoY for homes over £500K.

• Second-home sell-off: Double council tax on second homes (effective April 2025) is boosting supply in coastal hotspots like Torquay (prices down -0.7%).

The north and midlands are thriving

Why?

• Demand outstrips supply: Buyer interest is up 10%+ in the North West, Scotland, and Midlands, pushing prices up 3% YoY—double the national average.

• Affordability wins: With average prices 40% below the UK norm (£130K–£220K in hotspots like Wigan and Blackburn), these regions have room for growth.

• Belfast leads the pack: Prices surged 5.7%—the fastest growth in the UK—thanks to strong local demand and limited stock.

Key catalysts

• Stamp duty shake-up: From April, 80% of London FTBs will pay stamp duty (vs. 50% before), cooling demand. But in cheaper regions, 60% of FTBs still pay zero tax below £300K.

• Mortgage rates hold steady: At ~4.5%, rates are stable but higher than late 2024, capping buying power.

• Wage growth to the rescue: 6% YoY earnings growth is propping up affordability, but higher taxes and living costs offset some gains.

Key takeaways

• With 30% of annual listings typically hitting March–May, sellers must price competitively to stand out.

• Regional divergence continues: The North’s affordability edge and tighter supply will fuel above-average growth.

• Risks to watch: Fewer BoE rate cuts are expected and could keep mortgage costs high, also stamp duty changes may affect London’s recovery.

Ultimately sellers must price realistically especially in places like London.

For investors, the North’s momentum and rental demand, make it a bright spot for long-term gains.

What’s your move? Drop us a line to discuss how these trends impact your strategy.

After delays, the government has confirmed the staged rollout of Making Tax Digital (MTD) for landlords, starting April 2026. 

So, if you’re a landlord with rental income over £50k, digital tax reporting is now your new reality.

What’s changing?

• MTD Deadlines: Who’s up first? The rollout is income-tiered, meaning the bigger your rental earnings, the sooner you’ll need to comply:

• April 2026 – Landlords with £50k+ in rental/self-employment income

• April 2027 – Those earning £30k+

• April 2028 – £20k+ landlords join the party

Why is HMRC doing this? (They want their money!)

The government estimates a £35.8 billion tax gap—money that should be paid but isn’t.

And who are the suspects? Hardworking Landlords and self-employed folks.!

MTD aims to:

• Reduce errors (no more “I forgot that rental income")

• Close loopholes

• Make tax reporting smoother (in theory, at least)

How to Prep: Your MTD survival kit

• Check Your Income Threshold 2024-25 tax return determines if you’re in the 2026 batch.

• Pick Your Software Weapon Full accounting software (Xero, QuickBooks) – Best for multi-property portfolios.

• Go Digital (Yes, even if you love paper receipts) Digitize records now

• Research tech platforms: Many proptech platforms are already MTD-compliant.

Remember the pandemic property boom when homes seemed to be going through the roof.

Well, those days seem to be behind us.

The latest figures from Hamptons show that average house seller gains in England & Wales have slipped below £100,000 for the first time in three years.

In 2024, sellers made an average of £91,820 on their homes—a drop of over £10,000 from 2023 and a far cry from the £112,930 peak of 2022.

That’s a clear sign that the market is cooling.

So what’s responsible for this slowdown?

• Mortgage rates: The rapid hikes since 2022 have made borrowing costlier, cooling buyer demand. And while rates have recently reduced, they’re still high enough to affect house price growth

• Meanwhile, affordability is still an issue, meaning fewer people are able to get on the property ladder. Yet, 91% of sellers turned a profit in 2024, even in a “slow” market

Historically, the secret to growth was holding for the long term. Those who owned for 20 years saw an 83% increase in value, while short-term sellers (under five years) barely beat inflation.

Where is the growth now?

In 2024, the average London seller made £172,350—still a tidy sum, but down nearly £32,000 from the year before.

Meanwhile, Wales led the way in percentage growth at 48%, and the North and Midlands are catching up fast.

The gap between London and the rest of the UK is narrowing, and smart investors are already shifting their focus to these emerging hotspots.

So what’s the play moving forward?

Forecasts suggest UK property prices will rise by 3% in 2025, with London leading at 4%.

If mortgage rates ease up and economic confidence improves, more homeowners who’ve been sitting tight may finally make their move.

Our take:

• Long-term holds still win – The longer you own, the bigger your gains. Simple.

• Look beyond London – The North, Midlands, and Wales are where the action is.

• Consider houses over flats – If you’re looking for strong appreciation.

The market might not be as hot as 2020-2021, but for strategic investors, that’s a good thing. It’s time to buy in undervalued areas, and play the long game.

Ric Lewis didn’t start in real estate. He started with a Spanish and Economics degree from Dartmouth, a stint at Harvard Business School, and a finance career at AEW Capital Management.

But in 1998, he made a game-changing move.

The Turning Point

• Left Boston for London to expand AEW’s European arm.

• Spotted a gap in the market: European real estate was ripe for disruption.

• Bet on himself, launching Curzon Global Partners—his first property investment firm.

The deal that changed everything

In 2009, after the financial crisis shook global markets, most investors were hiding under their desks.

Not Ric.

He doubled down, co-founding Tristan Capital Partners—a £14 billion real estate empire built on distressed assets and strategic turnarounds.

His signature move was classic - buying up undervalued properties when others were panic-selling, and turning struggling assets into cash cows (think of London offices, European logistics hubs).

He scaled Tristan into the UK’s largest black-owned business.

Here’s his blueprint which anyone can follow:

• Buying when everyone was scared meant he reaped huge profits when the markets bounced back.

• Reinvented himself from fund manager to founder—he didn’t just invest, he built the machine.

• Expanded across Europe, targeting Germany, France, and Spain when others stuck to London.

• Redefining pressure as self-imposed deadlines: his mantra is "If I don’t close a deal in 90 days, I walk."

• Aggressive reinvestment: Profits didn’t go to yachts—they went to bigger deals.

• The Philanthropy Edge: Founded The Black Heart Foundation (550+ scholarships and counting).

Tristan Proved wealth isn’t just about money—it’s about legacy.

Final thoughts

• Pivot - our past career isn’t a cage—it’s a ladder. (Basketball taught him teamwork & strategy.)

• Buy When Others Are Crying -The best deals happen in chaos.

• Pressure Is a Gift - No safety net? Good. It forces you to build wings.

• Wealth ≠ Success "If you’re not lifting others up, what’s the point?"

Ric’s story isn’t about luck—it’s about leverage.

Leveraging his skills, timing, and an unshakable belief that every ‘no’ is just a ‘not yet’.

That's it for this week folks. Each week we'll cover strategies, updates and insights to help you succeed in real estate. We love this stuff!

If you Have questions or just want to chat, We want to hear it.

See you next time in your inbox!

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