Buy to Let

• Your buy to let investment should be considered as a medium to long term investment.
• Ensure that the rent you can achieve will more than cover any mortgage payments, service charges, agent fees and any other outgoings for the property. Also consider void periods.
• Consider and research the local market demands before making a purchase, and always get advice from your local agent.
• Consider what tenants you would like: families, young professionals, sharers or company lets? Think about what type of property and areas each group is looking for, including transport links and amenities.
• Look at the saturation of rental properties as well as demand. Some popular areas may be saturated with properties, making the risk of void periods greater.
• Present your property to high standards to attract the best tenants and higher rents. Neutral decor and carpets, with modern kitchens and bathrooms, tend to let best.
• Do not let your personal taste take over; the property is for tenants, not for yourself.
• Beware of taking on properties which may require major investment or high ongoing maintenance costs if you cannot afford them.
• Any work carried out to a property prior to first letting is tax deductible, as are works and repairs after letting (including new kitchens and bathrooms) as long as they are like for like and not a capital improvement such as a conservatory.
• Tax deductible costs include mortgage interest payments, letting agency fees, letting costs, service charges, repairs and void period bills.
• Always use an agent or solicitor for a professional tenancy agreement with all the necessary clauses and up to date legislation to protect you. Do not consider off the shelf tenancy agreements.
• Always have a professional inventory and schedule of condition drawn up, and always have the inventory clerk carry out the check-out service.
• Unless you have plenty of time and plenty of contractor contacts, you may wish to consider a full management service, especially if you are going overseas.

Consider Stamp Duty Land Tax (SDLT) before proceeding with a property purchase. SDLT on buy to let and second homes is charged at 5% above the standard rates, as set out below.

Overseas companies, corporate bodies and investment schemes will be charged 15% plus a 2% surcharge SDLT on residential properties costing more than £500,000.

SDLT rates are approximate, based on 2025/2026 rules, and should be confirmed with HMRC or your solicitor at the time of purchase.

As a buy to let landlord you have obligations to your tenants and a responsibility to comply with the relevant legislation and regulations. Rental income protection and legal guarantee services are also available to help safeguard your investment.

Regency Lettings & Property Management can advise you on any potential investment. We can view properties with you before you commit, making recommendations and advising on a realistic rental income, and we can organise refurbishments on your behalf. To read more about letting your property from start to finish, take a look at our Landlord Guide, or contact us for more details and advice.