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How to Buy a Rental Property in the UK: Step by Step

Run the numbers first, then buy for the tenant.

How to Buy a Rental Property in the UK: Step by Step Property Investment & Wealth Building

Updated October 2026 · Fraser Bond

Investing · Buy-to-let

Buying a rental property

25%typical deposit
+5%SDLT
Stresstest
Compliancebefore letting
In short: Buying a rental property starts with your strategy (yield or growth, single let or HMO) and budget. Buy-to-let mortgages usually need a 25% deposit and the rent must pass the lender's stress test. Stamp Duty includes a 5% surcharge on additional homes. Choose a property tenants want, near transport and amenities, then get it compliant before letting: gas and electrical safety, EPC (at least E), smoke and CO alarms, licensing if required, and deposit protection.

Step by step

1
StrategyYield, growth, area and tenant type.
2
FinanceMortgage in principle and stress test.
3
FindSearch, view and appraise yield.
4
BuySurvey, conveyancing and SDLT.
5
LetCompliance, marketing and referencing.

Frequently asked questions

How much deposit for buy-to-let?

Typically 25%.

Can I buy in a company?

Yes; take tax advice.

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