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The Renters’ Rights Act, effective from 1st May 2026, has introduced significant changes to the rental sector, affecting landlords, lenders, and investors.
The Renters’ Rights Act has raised concerns among 80% of UK landlords, with 70% believing it will negatively impact their lettings business and 77% expecting it to harm the market overall.
The proposed UK holiday tax could cost £500 million and may increase costs for landlords and first-time buyers in the short-term rental market.
UK buy-to-let repossessions have risen by 10% in Q4 2025, with landlords facing higher mortgage repayments due to rising interest rates. Landlords with a £250,000 mortgage face an annual repayment increase of £1,975.
Rents outside London have flatlined for the first time since 2017, potentially impacting landlords. With increased borrowing costs and stagnant rents, landlords could face squeezed profits.
Buy-to-let lending increased by 18.2% in Q4 2025, driven by landlords refinancing existing loans. This led to increased rental yields and lower interest rates, benefiting landlords.
UK construction output has fallen for the fifth quarter straight, potentially impacting mortgage holders. First-time buyers and remortgagers could see changes in their monthly payments due to shifts in property prices.
Despite rising buy-to-let mortgage rates, the UK rental market remains stable with average rents outside London holding steady at £1,370 per month in Q1 2026. However, landlords face increased borrowing costs which may put upward pressure on rents.
The proportion of landlords selling off their former rental properties has nearly halved in the past year, indicating a slowdown in the wave of buy-to-let exits.
Winkworth s profit before tax declined by 11% to £2.11m in 2025 despite steady revenue. Property management income grew by 9% to £17m, overtaking lettings income for the first time.
Approximately 220,000 rented homes are expected to be sold by the end of 2026, representing around 5% of the UK s private rental stock. This is largely attributed to the upcoming Renters Rights Act.
A complete guide to buy-to-let tax in 2026 — covering Section 24 mortgage interest relief restrictions, capital gains tax, allowable expenses, and tax-efficient structures.