The buy-to-let market is in a state of change, leaving many would-be landlords asking the same question: is now the right time to invest? With mortgage rates easing and rental demand still rising, there are clear opportunities but also important challenges on the horizon.*

The Challenges

One of the biggest areas of uncertainty is the Renters’ Rights Bill, expected to become law by the end of 2025. If passed, the changes will make it harder for landlords to evict tenants, limit rent increases, and ban the practice of taking multiple months’ rent upfront.*

Other potential drawbacks include:
• Higher costs of maintaining rental properties
• Stricter energy efficiency standards due in 2030, which will likely require upgrades for many homes
• Stamp duty, which remains a significant upfront cost on buy-to-let purchases
• Relatively modest house price growth over the last year compared to the attractive four per cent plus returns available from risk-free investments such as National Savings and Investments bonds.*

The Positives

Despite these headwinds, rental demand remains strong. In the year to May 2025, average rents across England rose by 7.1 per cent, with regional differences ranging from 9.7 per cent in the North East to 3.7 per cent in Yorkshire.

On the financing side, conditions have also improved. There are now around 1,200 more buy-to-let mortgage deals available compared to a year ago, and the average two-year fixed rate is at its lowest since September 2022.*

The Bottom Line

Becoming a landlord in 2025 is far from a straightforward decision. The landscape is changing, but for those prepared to do their research and invest wisely, opportunities remain. Choosing the right property, in the right location, at the right price will be more crucial than ever.*

If you are considering entering the rental market or expanding your current portfolio, Ashington Page is here to help you identify the best opportunities locally.

Get in touch today

*Nunn Hayward August Issue of Broadcast 2025