Tax changes, the Renters' Rights Act and higher interest rates have quietly turned many profitable lets into losses. LEXIT shows you what your property really earns, and what to do about it.
LEXIT assessment
2-bed terrace, Leicester
Bought in 2016 for £185,000, EPC rating D
Tax is 178% of the real profit. On these numbers, an exit is worth modelling.
Each one is manageable on its own. Together, they change the maths for most private landlords, especially higher-rate taxpayers with a mortgage.
Finance Act 2015
Mortgage interest is no longer deducted from rental profit. Individual landlords get a 20% tax credit instead.
Higher-rate taxpayers can owe tax on profit they never made. At today's interest rates, many portfolios run at a loss after tax.
2025
Section 21 'no fault' evictions end, all tenancies become periodic, and rent increases are limited to once a year and can be challenged.
Rent is harder to move to market level, regaining possession takes longer, and if you evict to sell you cannot re-let the property for 12 months.
Minimum EPC standards
Rented homes must already meet EPC E. Government plans would raise the minimum to EPC C for rented homes by 2030.
Older properties may need insulation, heating or window upgrades before they can be let, with the cost falling on the landlord.
LEXIT turns rent, costs, mortgage and tax into one clear figure: what the property actually leaves you with each year.
Section 24, stamp duty, capital gains and corporation tax are worked out for how you own the property, not a generic average.
UK residents, landlords living overseas and limited companies each get the calculations that apply to them.
Purchase price, rent, mortgage and running costs. It takes a few minutes and you can save and return.
LEXIT applies current tax and regulation to your figures and works out what you keep.
See whether the property is worth holding, improving or selling, and what an exit would leave you with.
Most landlords who sell don't use a high street agent. If exiting makes sense, LEXIT can introduce you to managed exit routes that keep costs and disruption down.