I'm interested in exactly the same questions and intend to speak to an Australian tax accountant with UK experience over the next couple of weeks. I was in the UK a couple of months ago and met with a tax accountant there. His knowledge proved sketchy but the key point I learned is  that there is a significantly different tax treatment if you buy a property with a 'buy to let' intention than if you buy with a 'holiday let' intention. Holiday let is much better if you are in this for capital growth.

I did look at this 8 years ago when I emigrated and at the time the implications were just scary – the ATO would want an annual valuation and would tax on this even though no material gain was realised.

A close friend with 5 lettings properties in Nottingham (50 people in total rent from him) who is also an accountant has just fixed his interest rate on 50% of his loan as he expects rates to rise at some point in 2011.