Featured by The Telegraph and IFA Magazine, Freedom of Information data obtained by Bowmore Wealth Group from HMRC reveals that crystallised losses on residential property sales by buy-to-let investors reached £1.15bn in the tax year 2024/25, a 32% increase from £870m the year before.*
Bowmore notes that the figures capture losses realised through completed sales and do not include unrealised gains or losses on properties that continue to be held. The scale of paper losses across the market may be considerably greater.
Property price stagnation across the UK, and outright falls in certain markets, have put increasing pressure on buy-to-let investors over the past year. According to the Lloyds House Price Index for September, average UK house prices increased by 0.9% in the 12 months to August 2026, while London prices fell by 2.2%.**
These price pressures have coincided with rising mortgage costs and the introduction of the Renters’ Rights Act, which restricts landlords’ ability to remove defaulting tenants and limits their capacity to raise rents.
David Floyd, Head of Private Clients at Bowmore Financial Planning, said, “BTL investors are looking at the growth in global stock markets and the high yields on UK Government bonds and asking themselves if they should still be in an investment that has relatively low net yields.”
David Floyd added, “The Renters’ Rights Act may have prompted buy-to-let investors to sell up even if it means taking a loss.”
For property investors weighing up their options in the current climate, understanding the financial implications of selling or holding may be an increasingly important part of longer-term financial planning.
* HMRC data provided to Bowmore Wealth Group via Freedom of Information request.
**Lloyds House Price Index, September 2026.
The Telegraph: Landlord losses on property sales hit £1.1bn
IFA Magazine: Losses made by buy-to-let investors on residential property jump 32% to £1.1billion
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