Is buy-to-let still worth it in 2026?

The honest answer is yes, but it depends far more on the numbers than it used to. Buy-to-let can still deliver a solid return in 2026, but the days of buying almost anything and watching it pay are gone. The landlords doing well now are the ones who run the figures properly before they buy.

Here is a straight look at where buy-to-let stands this year, and how to tell whether a property is worth it for you.

What has changed for landlords?

A few things have shifted the maths over the past few years.

Mortgage rates are the big one. When the base rate sat near zero, a landlord could borrow at around 2% and rent at a 5% yield, leaving a comfortable margin. In 2026, buy-to-let rates are commonly in the 5% to 6% range, which means a property has to work much harder to turn a profit.

The stamp duty surcharge on additional properties rose to 5% above the standard rates in late 2024, so the upfront cost of buying is higher. Tax relief on mortgage interest for personal landlords is also restricted, which has hit higher-rate taxpayers in particular. And from 2030, privately let properties will need a minimum EPC rating of C, so some older homes will need money spent on them to stay lettable.

None of this kills buy-to-let. It just means the margin for error is smaller, and the property you choose matters more than ever.

So is it still profitable?

For the right property, yes. Rental demand is strong, supply is short, and rents have climbed steadily. Average UK rents rose around 3.5% in the year to early 2026, and typical gross yields across the UK now sit close to 7%.

But that national average hides a big regional split. Yields are highest in the north of England, where lower purchase prices and solid rents combine well. In London and the South East, where property is far more expensive, yields are lower, often closer to 5% to 6%, with the return leaning more on long-term capital growth than monthly cash flow.

For landlords in North London and Hertfordshire, that is the key trade-off to understand. You are usually buying into a lower-yield, higher-value area, so the numbers need checking carefully to make sure the rent comfortably covers the mortgage and costs with room to spare.

How do you work out if a property stacks up?

Start with the rental yield. The sum is simple:

Annual rental income divided by the property price, times 100.

So a property costing £300,000 that rents for £1,500 a month brings in £18,000 a year, which is a 6% gross yield.

That is the gross figure though, before any costs. The number that really matters is what is left after the mortgage, letting fees, insurance, maintenance, void periods and tax. A property can show a healthy yield on paper and still leave you with very little once everything is paid. This is exactly where running the real numbers, not just the headline yield, makes the difference between a good investment and a slow drain.

What are the smart landlords doing in 2026?

A few clear patterns stand out among landlords making it work.

They focus on yield over hope. They buy where the rent genuinely covers the costs, rather than banking on house prices rising. They are not over-leveraged, usually holding at least 25% equity so a rate rise doesn't wipe out the margin. Many higher-rate taxpayers are buying through a limited company to sidestep the mortgage interest restriction, though that route has its own costs and is not right for everyone. And some are looking at higher-yielding options like HMOs, where the rent per property is significantly higher.

The common thread is that buy-to-let in 2026 rewards planning, not luck.

Should you get into buy-to-let now?

It comes down to your own numbers, your tax position and your goals. If you find the right property at the right price, with a yield that works after costs, buy-to-let remains a genuinely solid way to build long-term income and wealth. If the numbers don't stack up on a particular property, no amount of optimism will fix that, and it is better to know before you buy.

That is where it helps to talk it through with someone who will be straight with you.

How we can help

We arrange buy-to-let mortgages for landlords across Edgware, North London and Hertfordshire, from first-time landlords to those expanding a portfolio. We will look at the property, run the numbers honestly, and tell you whether they work before you commit. And if you're buying a home to live in rather than to let, we handle residential mortgages too.

If you are weighing up a buy-to-let and want a clear view on whether it stacks up, email solomon@kudosmortgages.com or book a quick call and we'll talk it through.

Frequently asked questions

Is buy-to-let still profitable in 2026?

It can be, for the right property. Rental demand is strong and yields across the UK average close to 7%, but higher mortgage rates and tax changes mean the numbers need checking carefully. Profit depends heavily on location, yield and your tax position.

What is a good rental yield?

As a rough guide, a gross yield of 6% or more is considered healthy, though this varies by area. Higher-value regions like London tend to offer lower yields with more reliance on capital growth, while parts of the north offer higher yields. Always look at the return after costs, not just the gross figure.

How much deposit do I need for a buy-to-let mortgage?

Most buy-to-let lenders want at least 25% of the property value as a deposit, and the best rates usually need 40% or more. The amount you can borrow is based mainly on the expected rental income rather than your salary.

Is it better to buy through a limited company?

For some higher-rate taxpayers it can be, because it changes how the income and mortgage interest are taxed. But it comes with extra costs and admin, and it is not right for everyone. It is a decision to make with both a broker and an accountant before buying.

Will buy-to-let mortgage rates fall in 2026?

Rates have eased from their peak but remain higher than the very low levels of a few years ago. Forecasts point to gradual movement rather than a sharp drop. No one can guarantee where rates will go, so it is best to plan on the numbers as they are today.