10 Smart Strategies to Overcome Clause 24 and Maximise Your Rental Income

Since its full implementation, many landlords have seen profits shrink and tax bills rise. But it’s not all doom and gloom. With the right strategy, you can still build a profitable portfolio.

To help you stay ahead, we’ve put together 10 tried-and-tested strategies to maximise your revenue and minimise the impact of Clause 24.

1. Consider Incorporating Your Portfolio

Owning property through a limited company structure allows mortgage interest to be deducted as a business expense. While incorporation isn’t right for everyone, it’s worth exploring with a tax advisor—especially if you’re a higher-rate taxpayer.

2. Re-Mortgage to a More Competitive Deal

Review your current mortgage rates. Switching to a better deal or moving to an interest-only mortgage can reduce your monthly costs and improve cash flow.

3. Increase Rent (Within Reason)

Review your rent in line with local market conditions. Even a modest increase can help offset rising costs—but always remain competitive to retain good tenants.

4. Focus on High-Yield Areas

If you're considering expanding your portfolio, look beyond capital appreciation. Properties with strong rental yields can help boost monthly income and cushion the tax blow.

5. Improve Energy Efficiency

Investing in energy-saving upgrades (like insulation, double glazing, or efficient boilers) can reduce tenants' bills and justify a rent increase. It also prepares you for incoming EPC regulations.

6. Maximise Allowable Expenses

Make sure you’re claiming all allowable expenses, such as maintenance, letting agent fees, insurance, and travel costs. Every deductible helps reduce your taxable profit.

7. Explore Short-Term or Holiday Lets

In some cases, switching to short-term letting can offer higher returns. These properties may also qualify for different tax treatment (like capital allowances), but management can be more intensive.

8. Share Ownership with a Spouse

If your partner pays a lower rate of tax, transferring a share of the property (or properties) could reduce your overall tax liability. Be sure to seek legal and tax advice before doing this.

9. Diversify Revenue Streams

Think beyond rent: consider charging for added services, such as furnished units, parking spaces, or offering inclusive bills. These extras can make your property more appealing and boost income.

10. Work With a Specialist Lettings Agent

A good agent does more than just find tenants. At Hemmingfords, we help landlords across North London maximise revenue, reduce void periods, and stay compliant with ever-changing regulations.

If you're unsure how Clause 24 is affecting your bottom line, or want tailored advice, we're here to help.

Pop in to see us in Islington and let's have a cup of coffee together.

Let's future proof your portoflio together!