Is now a good time to become a landlord in England? With more mortgage deals and lower interest rates, many wonder if this is the moment to invest in buy-to-let.
Cons
Uncertainty remains in the private rental market due to the Renters’ Rights Bill, which will likely become law by year-end. These changes, which apply in England only, will make it harder for landlords to evict tenants, limit rent increases, and stop landlords from collecting several months’ rent in advance.
Other disadvantages include:
- Increased property maintenance costs.
- The proposal that rented properties meet stricter energy efficiency standards by 2030. New landlords should consider this when buying property.
- Stamp duty, which can be a significant upfront cost for buy-to-let purchases.
Modest price growth over the past year adds to these concerns. Attractive rates on risk-free alternatives remain available, with National Savings & Investments paying over 4% on five-year bonds.
Pros
The biggest advantage is rising rents. Over the 12 months to May 2025, average rents in England increased by 7.1%, with wide regional differences. The North East saw a 9.7% increase, while Yorkshire recorded 3.7%.
Financing is another benefit. Potential landlords now have around 1,200 more buy-to-let mortgage deals available than a year ago. The average two-year fixed mortgage rate is at its lowest since September 2022.
Deciding to become a landlord is far from simple. If the answer is ‘yes’, buying the right property, in the right location, at the right price is more important than ever. Good tax planning can help protect your investment.
Read the Government’s guide to the Renters’ Rights Bill here.