Taxation of property
Property Outlook
For anyone looking to enter the buy-to let market as a new landlord, the decision is currently far from straightforward.
The recently enacted Renters' Rights Act 2025 means significantly increased rights for tenants. Also, from 6 April 2027 the income tax rates on property income will effectively be increased by two percentage points. As a result of such changes, the property market appears to be moving away from the traditional buy-to-let landlord with one or two properties, and towards professional landlords who own a more substantial property portfolio – a minimum of five properties. These professional landlords generally prefer to operate via a limited company structure, will manage their properties on a full-time basis, and will buy properties in whichever part of the UK provides the best return on investment.
If you are able to stay in or enter the rental market, average English rents increased by 3.6% over the year to February 2026, with the average monthly rental now standing at Åí1,430.
