David Joyson

Written by

David Joyson

Home Insurance Expert & Customer Champion

Sophie Kamkar

Reviewed by

Sophie Kamkar

Content Marketing Manager

Less than 1 minute

Updated: 12 Feb 2024

When the then chancellor of the exchequer george osborne announced that mortgage interest tax relief for buy-to-let landlords was going to be scrapped, there were howls of aguish from across the letting sector.

Tenants would be turfed out as landlords sold up before their properties became financially unviable.

That was over two years ago. However, new figures just released by landlord insurance provider Homeprotect suggest not only that the ‘Mad Tax’ apocalypse didn’t happen but, in fact, mortgaged landlords are alive and well. They’re also living in Greater London.

More landlords have a mortgage

In 2015, when the Chancellor’s raid on landlords first burst onto the unsuspecting rental sector, 60% of the requests the company received for landlord insurance was for mortgaged properties, and 38% was for homes the landlord owned outright.

Against expectations, these proportions had actually grown further apart by mid-2017, with requests from mortgaged landlords rising to 63%, while those from outright owned properties dropping to 37%.

Had the gloom-mongers been believed, there would be far fewer private, buy-to-let landlords letting homes out. The good news for renters is this appears not to be the case.

The north/south divide is a reality for landlords

Property ownership amongst landlords varies considerably in different parts of the country, though. In Greater London, 75% of rented properties are mortgaged, but only 53% are in Scotland. The much higher level of buy-to-let activity down south reflects market demand, as well as greater opportunities to benefit from house price rises. But these statistics also pose a challenge to Scottish entrepreneurs: are you missing out on buy-to-let?

Homeprotect landlord insurance protects both buy-to-let landlords and those who own their rental properties outright. Landlord home emergency and legal expenses cover options are also available. 

Data based on 5,079 quotes and sales for policies to start between 1 January 2015 and 3 May 2017.

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