Here’s What You Need to Know

As we move into 2025, landlords and property investors are facing an evolving landscape. With new regulations, tax changes, and shifting market conditions, many are asking: Is buy-to-let still a good investment?

At Broadbench, we believe that despite the challenges, buy-to-let remains a powerful wealth-building strategy—provided you have the right approach and expert guidance.

What’s Changing for Buy-to-Let in 2025?

Over the past year, the property market has been shaped by government policies and economic shifts. Key updates include:

📌 Stricter Energy Efficiency Rules – New EPC requirements mean landlords must invest in energy improvements, but compliant properties attract quality tenants.

📌 Taxation & Section 24 – The continued restriction on mortgage interest tax relief affects profit margins for higher-rate taxpayers.

📌 Higher Mortgage Rates – Interest rates have risen, making financing more expensive for landlords.

📌 Stamp Duty – If you’re a landlord purchasing a buy to let property, you’ll be required to pay a minimum 5% extra charge. You’ll need to pay this alongside any regular Stamp Duty fees. The surcharge is applied when you buy a house in addition to one you already own. So, you won’t pay this surcharge if you only own one property. You can find out more about the fees by reading this article.

📌 Renters’ Reform Bill – Proposed changes could impact eviction rights, tenancy agreements, and landlord responsibilities.

Challenges Landlords Face in 2025

Owning rental properties isn’t as straightforward as it once was. Some key difficulties include:

🔹 Higher operating costs – From maintenance to compliance upgrades, expenses continue to rise.
🔹 Regulatory pressures – New legislation is shifting the landscape for landlords.
🔹 Financing hurdles – Mortgage affordability remains a concern.

Is Buy-to-Let Still a Smart Investment?

Despite these hurdles, buy-to-let still offers great potential in 2025:

✅ Strong Rental Demand – The number of renters continues to rise, ensuring steady rental income.
✅ Capital Growth – Property remains a long-term appreciating asset.
✅ Diversification – Real estate provides stability compared to riskier investments.
✅ Passive Income – With the right property management, landlords can enjoy hands-free returns.

Get the Best Buy-to-Let Mortgage Deal

The key to success in 2025? Working with the right mortgage adviser to secure the best possible financing deal. Broadbench can help you navigate the market and find a mortgage that maximises your returns.

📩 Ready to invest wisely? Speak to a Broadbench adviser today.

🔗 Read our full guide here

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