Buy-to-Let in 2025: How Landlords Can Thrive in a Tougher Lending Market
The UK rental market remains strong, but landlords are operating in a more regulated, cost-sensitive environment.
Buy-to-let (BTL) mortgage rates have started to ease, but stricter stress tests and ongoing tax limitations mean investors must be strategic.
The current picture
Rates easing: Average 2-year fixed BTL rates are around 5.25%, down from 6% in early 2024.
Yields rising: According to Rightmove, average yields now stand at 7.1% nationwide.
Tax still tight: Mortgage interest relief remains capped at 20%, meaning net returns can vary widely.
Key strategies for landlords
Remortgage proactively: Securing a new deal before your fixed rate ends can protect cash flow.
Consider limited company structures: This can offer tax advantages depending on your portfolio size.
Invest in energy-efficient properties: Lenders increasingly favour eco-compliant assets, and tenants appreciate lower running costs.
Final thoughts
At Enlarge Consultancy, we work with landlords across the UK to navigate changing tax rules and lending criteria. Our experts can help you identify lenders with flexible buy-to-let terms and structure your borrowing efficiently.
Contact Enlarge Consultancy today for tailored advice on remortgaging or expanding your property portfolio.
