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Buy-to-Let Pros and Cons in 2026

Still viable, but returns need careful numbers.

Buy-to-Let Pros and Cons in 2026 Property Investment & Wealth Building

Updated October 2026 · Fraser Bond

Investing · Buy-to-let

Buy-to-let: pros and cons

Income& growth
Taxchanges
Renters' RightsAct
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In short: Buy-to-let still offers rental income and long-term capital growth, with strong tenant demand in London. But margins are tighter than a decade ago: mortgage interest relief is limited to a 20% tax credit for individuals, the stamp duty surcharge on additional homes is 5%, and the Renters' Rights Act has ended Section 21 and fixed-term tenancies. Run the numbers on yield after costs, plan for EPC upgrades, and consider whether a limited company structure suits you.
Pros

Rental income, capital growth, strong London demand, leverage.

Cons

Tax changes, regulation, voids, maintenance and finance costs.

Regulation

Periodic tenancies, no Section 21, the PRS database and ombudsman.

Structure

Personal or limited company; take tax advice.

Frequently asked questions

Is buy-to-let still worth it?

For many, yes, with the right property and numbers.

What yield do I need?

Enough to cover costs and higher rates, with a buffer.

Investing in London?

Talk to our team or get a free valuation.

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