The Sunday Times has run an article under the heading ‘Is Being a Landlord Still Worth It in 2025?‘

It can be seen here, says that Buy-to-let has become a more complex and less tax-friendly investment over the past decade. Rising interest rates, reduced tax relief, and regulatory changes have pushed some landlords to exit the market — but that doesn’t mean it’s no longer viable.

The Challenges

• Tax changes: Mortgage interest relief is now capped at 20%, and landlords face a 5% stamp duty surcharge on second homes in England (8% in Scotland).

• Higher borrowing costs: Interest rates are around a 15-year high, eroding rental profit margins.

• Upcoming regulation: The proposed Renters’ Rights Bill includes the end of Section 21 evictions, rent rise limits, and mandatory registration with an ombudsman — which may mean more costs and oversight for landlords.

But It’s Not All Bad News

• Rental demand remains strong, and tenants essentially pay down your mortgage.

• Property remains a physical, appreciating asset, potentially offering long-term gains.

• Profit is still possible, particularly if you choose the right location, manage costs wisely, and run the numbers carefully.

Key Considerations Before You Invest

• Will the rent cover at least 125% of the mortgage?

• Can you afford payments during void periods or rate increases?

• Are you better off using a letting agent or managing it yourself?

• Would a limited company structure lower your tax bill?

Should You Use a Limited Company?

Setting up a company can offer tax benefits (like paying corporation tax on rental profits), but it also brings complexity and upfront costs — especially if transferring existing properties into the structure.

Conclusion:
Being a landlord in 2025 can still be worth it, but it’s no longer a hands-off, guaranteed-profit investment. Success requires careful financial planning, awareness of changing laws, and a long-term outlook. If you’re strategic and well-informed, it’s still possible to make buy-to-let work for you.