Buy-to-Let in the UK: A Smart Move for New Landlords in 2025?
In our recent video, we’ve been talking about Buy to Let and capturing our expert views at Residential Estates. Andrew Brassey, our resident Economist and regional member of the Bank of England Committee joined Mike to assess current opportunities for investors.
This episode and supporting blog outlines some of the reasons why Buy to Let is still completely viable if you choose the right property and set up correctly The UK property market has long been a haven for investors, and buy-to-let remains a popular choice.
With 2025 bringing evolving economic conditions, shifting regulations, and new rental market trends, now could be an opportune moment for new landlords to enter the sector. But how does buy-to-let compare with short-term lets? And why should investors consider buy-to-let in 2025?
Why 2025 Is a Good Time to Invest in Buy-to-Let
Several factors make buy-to-let an attractive option for investors this year:
Rising Rental Demand – The demand for long-term rental properties continues to outstrip supply, particularly in key urban centres. With high mortgage rates making homeownership less accessible, more people are turning to the rental market.
Stabilising Interest Rates – While interest rates rose significantly in recent years, forecasts suggest they may begin to stabilise or even decrease slightly in 2025. This could lead to more affordable buy-to-let mortgage deals.
Potential for Capital Growth – UK property values have historically increased over time. Even with economic fluctuations, well-located properties can appreciate in value, providing long-term financial gains.
Stronger Rental Yields in Some Regions – Northern cities like Manchester, Leeds, and Liverpool continue to offer some of the best rental yields, often exceeding 6%, compared to London’s lower average yields.
Government Incentives and Market Adjustments – Changes in stamp duty thresholds or incentives for landlords to invest in energy-efficient properties may provide new opportunities in 2025.
Buy-to-Let: The Benefits
✅ Stable, Long-Term Income – Tenants typically sign leases for 6–12 months or longer, providing steady and predictable rental income.
✅ Less Time-Intensive – A buy-to-let property requires less hands-on management than a short-term rental, where regular cleaning and guest turnover are necessary.
✅ Lower Regulatory Risks (for Now) – While landlord regulations exist, short-term lets are facing increasing restrictions, particularly in major cities like London, Edinburgh, and Manchester.
✅ Easier Mortgage Access – Buy-to-let mortgages are widely available, whereas lenders may impose stricter terms on short-term rental properties.
Conclusions: Why Buy-to-Let in 2025?
For new landlords, buy-to-let remains a solid and relatively low-risk property investment strategy. The UK rental market’s demand is growing, interest rates may stabilise, and long-term tenancy agreements provide financial security.
While short-term lets can be lucrative in many locations, the increasing regulatory scrutiny and operational challenges make buy-to-let a more predictable and manageable investment for those more risk adverse.
With careful planning—choosing the right location, understanding financing options, and staying updated on regulations—new landlords in 2025 can build a successful and profitable buy-to-let portfolio.
Residential Estates, one of UK’s leading property investment companies, are here to provide investors with lucrative buy to let options along with a full property management service to further enhance returns. Our management options include both long and short-term lets.
Please feel free to contact us anytime so we can introduce you to an outstanding property portfolio or join our roster of landlords, where we successfully manage hundreds of properties across the country.
Short-term letting thrives in areas with a robust influx of visitors. Major cities with vibrant cultural scenes, business hubs, and excellent transport links such as Manchester, Birmingham, and Glasgow are particularly well-suited for this model. Coastal towns and scenic rural destinations also benefit, attracting holidaymakers seeking a more personalised accommodation experience compared to traditional hotels.
In urban areas, proximity to tourist attractions, conference centres, and transport hubs plays a crucial role in the success of short-term rentals. Investors should consider properties that offer easy access to these amenities, ensuring a steady flow of potential renters throughout the year. One great example from our portfolio is Blackpool where you can acquire a studio for as little as £35k with NET yields of up to 16%.
Your Next Step in Property Investment
Whether you're looking to expand your portfolio or make your first investment, we make the process effortless. With expert guidance, a hands-off management approach, and access to high-demand rental markets, Residential Estates provides everything you need to succeed in property investment.
Get in touch today to explore our latest opportunities and start building a profitable, stress-free property portfolio.
