When you hear buy to let rent, a property purchased specifically to rent out to tenants for income. Also known as investment property, it’s one of the most common ways people in the UK build long-term wealth outside of pensions or stocks. It’s not just about buying a house and waiting for rent to roll in. There are rules, costs, and risks most beginners don’t see until it’s too late.
Many people think a buy to let property, a residential property rented out under a tenancy agreement. Also known as investment home, it is a simple path to passive income. But lenders don’t treat these loans like regular mortgages. You usually need a 25% deposit, and your income must cover the mortgage by 125-145% of the rent. That’s not just a rule—it’s a filter. If you’re earning £30,000 a year and the rent is £1,000, you’re probably not going to qualify unless you have other income or savings. And if you’ve got bad credit or no proof of steady income, banks will say no. Then there’s tax. Since 2017, landlords can’t deduct all their mortgage interest from rental income anymore. That’s changed how much you actually take home. And don’t forget repairs, void periods, insurance, and letting agent fees. These aren’t extras—they’re part of the cost.
Not every tenant is the same. Some stay for years and pay on time. Others damage the place or skip rent. That’s why knowing your rights as a landlord, a person who owns and rents out property to tenants. Also known as property owner, it matters. You need a legal tenancy agreement, a deposit protected in a government scheme, and an EPC rating. If you skip any of these, you could lose money—or even face fines. The good news? There are still plenty of people who need rental homes in the UK. Cities like Manchester, Birmingham, and Leeds have strong demand. Even smaller towns are seeing growth. But success doesn’t come from picking the cheapest house. It comes from understanding the numbers, the rules, and the people.
You’ll find real examples below—how much you can actually earn after costs, what credit score lenders look for, how shared ownership can work as a stepping stone, and why some landlords regret buying in certain areas. No fluff. Just what works—and what doesn’t—in today’s UK rental market.
