Is Buy-to-Let Dead or Still Worth It in 2025?
Why Some Say Buy-to-Let Is No Longer Worth It
In recent years, both new and experienced landlords have questioned whether buy-to-let is still worth it. The combination of legal reforms, tax restrictions, and rising costs has sparked headlines claiming “buy-to-let is dead”.
Let’s explore why this perception exists and why it’s not the full picture.
Buy-to-Let Challenges That Fuel Doubt
There’s no denying the following changes have made some investors nervous causing questions in the industry like “is buy to let dead?” and “is buy to let still worth it?”:
- Section 24 tax relief restrictions – landlords can no longer deduct all mortgage interest from rental income
- Stamp Duty surcharge – an extra 3% on additional properties
- Renters Reform Bill – aiming to abolish Section 21 “no-fault” evictions
- EPC requirements – landlords face pressure to upgrade energy performance
- Higher mortgage interest rates – squeezing profit margins
These challenges however, don’t mean buy-to-let is no longer viable – but they do require a smarter approach.
Is Buy-to-Let Still Worth It in 2025? Yes — Here's Why
Despite the hurdles, buy-to-let remains a worthwhile investment for those who plan carefully. Here’s why:
✅ Strong Demand for Rentals
The UK has a severe shortage of rental properties. With homeownership out of reach for many, rental demand – especially in cities like Manchester – continues to grow, driving rents higher year-on-year.
✅ Attractive Yields in Key Areas
While some areas are seeing tighter margins, others (especially the North West) offer robust gross yields of 6%–9%. Buy-to-let is still worth it where there’s high demand, reasonable entry prices, and tenant security. See our recent blog on Manchester hotspots to read more about this!
✅ Capital Growth Is Still a Long-Term Benefit
UK property has historically appreciated in value over time. Even with short-term volatility, investors often enjoy strong capital gains over 10–15+ years.
How Successful Landlords Are Adapting
While the legal landscape has shifted, proactive landlords are adapting. Key strategies include:
- Switching to limited company ownership to reduce tax exposure
- Improving energy efficiency to meet EPC requirements
- Budgeting for professional management to stay compliant and hands-off (such as us – like our full management service!)
- Using fixed-rate mortgages to hedge against interest rate rises
- Investing in higher-yield, lower-cost areas
Novellus helps landlords stay ahead by offering hands-on support, regular updates, and fully managed services.
Buy-to-Let as a Long-Term Wealth Strategy
Buy-to-let still offers:
- Monthly rental income
- Capital appreciation
- Leverage (when purchased using a mortgage)
- Inflation protection
- Tangible asset security
While it’s certainly not a “get rich quick” model (these don’t exist!), it’s still a viable long-term investment – especially when part of a diversified financial plan.
Who Is Buy-to-Let Still Right For?
- Experienced investors looking for stable returns
- New landlords willing to do their research or work with managing agents
- Homeowners with equity to leverage
- Landlords diversifying outside of London into higher-yield areas
Buy-to-Let in 2025: Dead or Worth It? Our Verdict
Yes, the rules have changed. But those who adapt, plan wisely, and stay informed can still enjoy strong returns, consistent rental income, and long-term asset growth. Working with an experienced, local managing agent such as ourselves and thoroughly researching the best buy to let areas can really help put you ahead of the competition!
