Two major UK newspapers have highlighted a growing trend: private landlords are leaving the buy-to-let market in favour of less burdensome and often more profitable alternatives.

Case 1: Buy-to-Let to Big Macs

• Anisha Sharma, a former landlord with six properties, sold up in 2022.

• She now owns four McDonald’s franchises.

• Her sister owns another three.

• Of the UK’s 1,400 McDonald’s outlets, roughly 1,100 are franchise-owned, offering potentially more stable returns than property letting.

Case 2: Buy-to-Let to ISAs

• Jake Fletcher, who began investing in five rental properties during the pandemic (Surrey & Isle of Wight), is selling his portfolio.

• He cites:

  • Recent tax changes

  • The cost implications of the upcoming Renters Reform Bill (especially energy efficiency)

• He is now investing in cash ISAs earning 5% annually:

  “I realised I could get 5% on cash and wouldn’t have to deal with any of the landlord issues.”

Industry Insight

• Both newspapers quote investment advisers and wealth managers noting a surge in landlords quitting the sector, particularly:

  • Small-scale landlords

  • Those unable or unwilling to adapt to tighter regulations and rising costs

Key Reasons Behind the Shift

• Tax burden: Reductions in mortgage interest relief and changes to capital gains tax.

• Regulatory pressure: Renters Reform Bill introduces stricter rules, especially on energy efficiency and evictions.

• Yield competition: ISA and other low-risk investments now offer comparable or better returns, without the hassle of tenancy management.