With lower interest rates and a record number of mortgage deals available, positive changes are on the way for the buy-to-let market in England – but is it a good time to become a landlord in 2025–2026?
If you’re thinking about investing in buy-to-let property and becoming a landlord in England within the next year, you’ll need to consider the pros and cons before taking the plunge.
Here’s what you should know about the current situation for landlords in England, and how gbac can help you manage your accounts if you decide to rent out your property.
Cons of becoming a landlord in 2025
With the Renters’ Rights Bill likely to become law by the end of this year, the rule changes it will enforce are still causing some uncertainty in the private rental market.
These new rules will impose restrictions on landlords in England when it comes to evicting tenants, increasing rent, and receiving several months of rent in advance.
Other disadvantages of being a landlord in the current market include:
- Increased property maintenance costs
- Potential for stricter energy efficiency regulations
- Significant upfront cost of Stamp Duty
Compared to relatively modest buy-to-let property price growth, some investors may prefer the reliable rate of return available on low-risk investments like fixed-rate bonds.
Pros of becoming a landlord in 2025
The main advantage of purchasing buy-to-let properties is that rents are continuing to increase, with the average rent in England going up by 7.1% between May 2024 and May 2025.
However, there can be wide differences between regions – for example, the average rent in the North East increased by 9.7%, while North Yorkshire’s average rent only increased by 3.7%.
The financing aspect is also a major benefit for potential landlords. Not only is the average two-year fixed mortgage rate the lowest it’s been since September 2022, but there are also around 1,200 more buy-to-let mortgage offers available to choose from than last year.
If you decide to become a landlord in England, after finding the right property in the right location, you must ensure you use Making Tax Digital software for tax compliance.
Financial advice for landlords in England
Becoming a landlord can be rewarding, but it’s not without hard work – including keeping comprehensive accounts, managing finances carefully, and complying with HMRC.
Thanks to our range of bookkeeping and tax consultancy services, these processes can become much easier when you outsource them to our experienced team of accountants in Barnsley.
We can also manage service charge accounts for residential and commercial developments, helping property managers and leaseholders to keep up with their legal obligations.
To find out what gbac can do for you, call us on 01226 298 298 or email info@gbac.co.uk.