Buy-to-let in 2026 — what actually works
Buy-to-let is no longer the low-effort income stream it was in the 2000s. Higher mortgage rates, the loss of full mortgage interest relief, and tighter regulation mean the maths only works for landlords who run the numbers properly before buying.
Read the full analysis in Is buy-to-let still worth it in the UK? and The future of UK buy-to-let.
Buy-to-let calculators
Every buy-to-let decision should start with the numbers. These free calculators cover yield, cashflow and comparing standard BTL against HMO.
Best UK cities for rental yield
Yield varies enormously by region. These city guides use current average purchase prices and achievable rents to show what gross yield is realistic in each market.
Indicative averages — see each city guide for the full methodology and what counts as a good rental yield.
Tax and ownership structure
How you hold a buy-to-let property — personally or through a limited company — has a major impact on tax, especially since mortgage interest relief was restricted for individual landlords.
Since Section 24, individual landlords receive a 20% tax credit on mortgage interest rather than deducting it as an expense — pushing many higher-rate taxpayers into a higher effective tax rate on rental profit.
Full tax breakdown →A limited company can still deduct mortgage interest in full and pays corporation tax (not income tax) on profit — often more efficient for higher-rate taxpayers, at the cost of higher mortgage rates and dividend tax on withdrawals.
Compare structures →Portfolio landlords with multiple properties face additional considerations — see Portfolio landlord tax basics.
Getting started as a landlord
If you're buying your first buy-to-let, follow this order — each step builds on the last.
Start with a plain-English overview of how buy-to-let mortgages, tax and yield fit together.
Buy-to-let for beginners →Buy-to-let mortgages are assessed differently to residential — usually on rental income coverage (ICR), not personal salary.
Buy-to-let mortgage guide →Run every prospective property through a structured checklist before making an offer.
How to analyse a buy-to-let deal →Gas safety, EICR, deposit protection and the Renters Rights Act all apply from day one of letting.
Landlord Compliance Hub →Buy-to-let guides
HMOs and multi-unit strategies carry extra licensing, financing and compliance requirements. See the HMO Investing Hub and Portfolio Landlord Hub for dedicated tools and guides.
About the author
✓ Editorially reviewed — all Poqet guides are checked for factual accuracy before publication and updated when UK rates or legislation change. Editorial Policy