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People who buy property to rent out also have to pay tax on the rental income. It's just like any other business. You pay tax on your profit (revenue less costs). In this case interest just happens to be one of the costs.

I'm not sure what you mean when you say these people have an 'advantage'?

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> I'm not sure what you mean when you say these people have an 'advantage'?

People who buy-to-let are not in the rental-income business, they are in the business of acquiring property, because property prices are sky rocketing.

People with a job trying to get on the property ladder pay mortgage interest with wages. People with second, third etc. properties deduct mortgage interest as an expense.

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