Buy-to-Let Investment Advice
Straight answers on where to buy, what it really costs and what the numbers look like after every bill, before you commit to a first or next purchase.
We are property sourcers, not financial advisers. We explain the numbers behind a purchase and find property that fits them, and we introduce you to brokers and accountants for the regulated parts.
- First-time and experienced investors
- Budgets from £20,000
- Fee payable on completion only
- Midlands and northern cities
Is buy-to-let still worth it?
Buy-to-let has become harder. Mortgage interest relief for individuals was cut back to a basic-rate tax credit, the stamp duty surcharge on additional property rose to 5 percentage points, and the Renters' Rights Act changed how tenancies work from 1 May 2026.
It still works where the rent comfortably covers the mortgage and running costs, the area has steady tenant demand, and you are buying for the long term. It does not work as a quick profit, and it does not work where the numbers only add up with optimistic rent or no repairs. Our job is to tell you which is which before you buy.
What you need before you buy
The two biggest costs, with stamp duty at current additional-property rates in England.
| Price | Deposit (25%) | Stamp duty |
|---|---|---|
| £100,000 | £25,000 | £5,000 |
| £120,000 | £30,000 | £6,000 |
| £150,000 | £37,500 | £8,000 |
| £200,000 | £50,000 | £11,500 |
On top of the deposit and stamp duty, budget for legal, survey and lender fees, any work needed before the first tenant moves in, and a reserve of several months' mortgage and running costs for empty periods and repairs. Non-UK residents pay a further 2% stamp duty surcharge.
How lenders decide what you can borrow
Buy-to-let lenders mainly look at the rent, not your salary. The rent usually has to cover 125% to 145% of the mortgage interest, calculated at a stress-test rate rather than the rate you will actually pay.
As an example, a £112,500 interest-only loan tested at 5.5% costs about £516 a month in interest. At 125% cover the rent must be at least £645 a month; at 145% it must be about £748. If the rent falls short, you borrow less and put in a bigger deposit.
Many lenders also want a minimum personal income and, for first-time landlords, owning your own home helps. Get a mortgage agreement in principle from a buy-to-let broker before you start viewing, so you know your limit.
A worked month, with every bill
An illustration, not a projection. Real figures depend on the property, the rent and your mortgage.
| Monthly figure | Amount |
|---|---|
| Rent on a £150,000 house | £850 |
| Letting agent management (12%) | −£102 |
| Maintenance reserve | −£75 |
| Landlord insurance | −£35 |
| Allowance for empty periods | −£40 |
| Mortgage interest (£112,500 interest-only at 5.5%) | −£516 |
| Left before tax | £82 |
That is deliberately modest, and it is before income tax. The case for buy-to-let rests on the tenant paying down the mortgage over years, and on long-term growth, rather than on a large monthly surplus. If a deal only works with no repairs and no empty weeks, it does not work.
Matching the property to the tenant
The right property depends on who actually rents in that street.
Terraced houses
Two or three bedrooms, often near town centres and transport. Popular with couples and young professionals, and usually the most affordable way in.
Semi-detached family homes
Three bedrooms, a garden and parking near good schools. Families tend to stay for years, which keeps turnover and empty periods down.
Flats
Suit single professionals near employment hubs. Check the lease length, service charge and ground rent before anything else.
Awkward property types
Studios in family suburbs, unusual construction or short leases have narrow tenant and lender appeal. We usually steer clear.
Choosing where to buy
Location decides more of a buy-to-let's success than anything else. We look for several large employers rather than one, good transport links to bigger job markets, and prices that local rents can support: if the rent in a street cannot comfortably cover a typical mortgage and costs, the numbers will not work however cheap the house looks.
We avoid chasing areas because they are in the news. The Midlands and northern cities we work in have been steady rental markets for years, and within each one some streets let far more easily than others. That street-level knowledge is what a sourcer is for.
Personal name or limited company?
Individual landlords can no longer deduct mortgage interest from rental income. Instead they get a tax credit at the basic rate, which leaves higher-rate taxpayers paying noticeably more tax on the same rent.
A limited company can deduct mortgage interest and pays corporation tax at 19% to 25% on profits, but taking money out as dividends is taxed again, company mortgages can cost more, and there are annual accounts to file. Moving property you already own into a company usually triggers stamp duty and capital gains tax, so decide before you buy.
This is a decision for your accountant, based on your income and plans. We can introduce you to accountants who specialise in property.
Letting under the Renters' Rights Act
- Periodic tenancies: since 1 May 2026 tenancies roll on with no fixed term, and tenants can leave on two months' notice.
- No Section 21: possession is only on the grounds in Section 8. If you want to sell or move in, the notice is four months and it cannot be used in the first 12 months of a tenancy.
- Rent increases: once a year through the Section 13 procedure, which the tenant can challenge at a tribunal.
- No bidding wars: landlords and agents cannot invite or accept offers above the advertised rent.
- Rent in advance: no more than one month's rent can be required once the tenancy is agreed.
- Pets and fair access: tenants can ask to keep a pet and you must answer within 28 days, refusing only with good reason. Blanket bans on families or tenants receiving benefits are not allowed.
A general summary, not legal advice. A solicitor or letting agent can advise on a specific tenancy.
Our core buy-to-let markets
Eight cities where prices still leave room for rent to cover the costs.
Four mistakes first-time landlords make
Chasing the headline yield
The highest advertised yields usually come with a reason: weak demand, poor condition or a difficult street.
Underestimating the costs
Management, repairs, insurance, certificates and empty weeks take a real share of the rent every year.
Buying somewhere you don't know
A spreadsheet cannot tell you which streets let easily and which do not. Local knowledge can.
Too small a reserve
A new boiler or two empty months should be an inconvenience, not a crisis. Keep several months of costs in reserve.
Talk through your first or next purchase
Tell us your budget, your timescale and what you want the property to do. We will give you a straight answer on what is realistic.
Buy-to-let questions
Is buy-to-let still profitable after the Section 24 tax changes?
It can be, in the right place at the right price. Individual landlords now get a 20% tax credit on mortgage interest instead of deducting it, which hits higher-rate taxpayers hardest. Lower borrowing, buying through a company, or buying where rent comfortably covers costs can all help. An accountant should model your own position.
How much deposit do I really need?
Usually 25% with a buy-to-let mortgage, but the deposit is only part of it. On a £150,000 house that is £37,500 plus £8,000 stamp duty at additional-property rates, legal, survey and lender fees, any work before letting, and a reserve. Some lower-priced deals start from around £20,000 of your own money.
Should I buy in my own name or through a limited company?
It depends on your tax rate, how many properties you plan to own and how you want to take money out. Companies pay corporation tax and can deduct mortgage interest, but company mortgages can cost more and profits are taxed again when paid out. Moving property into a company later usually triggers stamp duty and capital gains tax. Take accountancy advice first.
How long should I plan to hold a buy-to-let property?
Plan for at least five to seven years, ideally ten or more. Buying and selling costs are high, and the case for buy-to-let rests on rent paying down the mortgage and long-term growth, not on quick profit.
Can I put the rent up?
Once a year, using the Section 13 notice procedure with at least two months' notice. The tenant can challenge the increase at a tribunal, so the new rent needs to be in line with the local market.
Do you give mortgage or financial advice?
No. We explain the numbers behind a purchase and find property that fits them, but we are not authorised to give regulated advice. We can introduce you to independent buy-to-let brokers and accountants.