Buy-to-let Property
If you are looking to get started in the Buy to let property market in London, it is advisable to conduct a careful thought out market research before you decide to buy a property to rent out and take on a prudent approach to the amount you will want to spend for your property purchase.
Times have changed.
Purchasing a buy-to-let property, finding a tenant and then sitting back and rubbing your hands, that’s been and gone. These days, whilst buy-to-let is usually a good long-term investment, landlords are having to be more strategic about maximising revenue.
Generally speaking, investing in property is usually a good investment, but there have been periods when buy-to-let landlords have struggled to make a profit due to changes to legislation, interest rates or the unexpected decline of the area where they bought. Most notable is the Renters’ Rights Act (effective May 2026), which has made rental increases much harder to control.
If you choose to appoint an estate agent to manage your property letting, then be sure to select an agent who is a member of a professional association, such as the Proprty Mark or the UK Association of Letting Agents (UKALA)
Further tips on appointing a property estate agent, including the legal relationship, rights, and responsibilities, are available on many websites. Do your research to find an agent with whom you can build a long-term relationship to help you sell your properties quickly and efficiently.
Many landlords choose to manage their buy-to-let properties themselves and are happy to take on the responsibility of finding tenants, checking their references, organising rent payments, carrying out inspections, maintaining the property, and insuring against damage. See this Guide: Ultimate landlord guide to buy to let mortgages.
This is very doable if you are happy to attract long-term tenants, but more and more landlords are looking at the short let market as a way of not only maximising rents but also as a way of minimising tenant hassle. If this is of interest, then you will need a good Airbnb Management company. Click here.
Financing for buy-to-let properties is available from many lenders that offer specialist buy-to-let mortgages, as well as from mortgage brokers who seek out the best deals for buyers.
Most lenders expect you to charge rent to cover 125% of the mortgage repayments, and will require a 15% deposit to protect against falling prices. Although mortgages of 85% loan-to-value are the norm, some lenders sometimes offer 90% loan-to-value deals. Some lenders are less stringent about these conditions when interest rates are higher. Compare buy to let mortgages.
When managing properties, you will sometimes encounter disagreements with your tenants. You should have good negotiation skills and a responsive attitude to reasonable requests. It is also advisable to distance yourself emotionally from the properties you buy.
