The laws and legislation around letting and renting property has changed vastly over the last year or so, particularly with the introduction of a new Labour government in the UK. However, buy to let property investment properties are still attractive and can generate fantastic returns; if you work with the experts and invest in the right place at the right time. Here, Forshaw Land & Property Group presents you with the ultimate buy to let guide to provide you with all the relevant information you need to embark on your buy to let property investment journey in 2025.

Why Buy to Let Still Matters in 2025

The changes to landlords’ legal responsibilities in 2025 have been widely covered by the media, but in truth there remains great potential to make money from such investments – it just requires some expert management and some smart investment.

This guide applies to all types of landlords: from first-time investors (those who haven’t invested in property before and portfolio builders (those who wish to add to an existing portfolio of investment properties). All stand to benefit hugely from working with the specialists at Forshaw Land & Property Group.

What Is a Buy to Let Property Investment?

A buy to let property investment is the purchase of a property in which the owner does not intend to reside within, but will instead rent out to someone else. Such properties are usually financed by a specific buy to let mortgage product and are purchased with the intention to make money through rental returns on a monthly basis. Mortgage products vary between residential mortgages (the traditional ‘pay-off-the-house-you-live-in’ mortgage) and buy to let mortgages. The latter are only offered by specialist lenders.

When a property investor owns a buy to let property, they assert the legal responsibility of the landlord for the tenants within. Working with a specialist property management service such as Forshaw Groups sister company Primo Property Management, allows the legal obligations to all be met, including (but by no means limited to):

• Insurance
• Compliance with the Renters Rights Bill and other relevant legislation
• Property maintenance
• Emergency response
• Health and safety concerns
• Tenant referencing
• Rent collection
• Deposit protection
• Inventory collation
• Property vacation and re-marketing

Planning Your Buy to Let Investment Strategy

As with any investment opportunity, it’s important that a buy to let property investment is properly planned for and strategised to maximise the potential returns. This includes planning:

• Clear investment goals
• Choosing the right property type 
• Deciding on how to manage the property

Most decisions can be made and goals set once you decide which property type you intend to invest in, as the yields and levels of management do tend to depend on that. The most common buy to let property investment types are:

Student Lets

Student lets are residential accommodation for groups of students usually attending higher or further educational establishments, with tenancies tending to last a full educational year. Technically a sub-category of HMOs (unless single flats or apartments are being let), student lets are considered a predictable and stable option for property investment. The educational schedule makes it easy to plan around, and contracts are usually joint so if one tenant leaves, the others must cover their rental share.

The income and your void periods are predictable and usually stable. You know every year when the tenants will arrive and when they will leave. This makes it easier to manage and model finances.

Student tenants’ expectations of a property are lower than for most other types of HMO but do often need emergency and maintenance action.

Lovell Park – Leeds

HMOs

HMOs (Houses in Multiple Occupation) are defined as properties where three or more tenants who are unrelated live together and pay rent to a landlord. This option usually sees individual bedrooms occupied by tenants with other facilities shared.

HMOs are considered a prosperous buy to let property investment as often more money can be paid renting out single rooms than the home as a whole. There are several different types of HMOs, including boutique HMOs (the most profitable, for high-end professionals in a city centre; but require a large initial financial outlay); post-grad and professional HMOs (very in demand, but less high-end than boutique); blue collar HMOs (perhaps the largest market, but proves lower yields as these tend to be in cheaper areas and only basically furnished); and social housing HMOs (properties for tenants on benefits – which is limited in terms of yield due to the accommodation benefit limits, but a large market).

Family Homes

Family homes bought on a buy to let investment basis tend to be situated in suburbs and near amenities such as schools. Family tenants tend to be younger households and may be long term but often rent with the goal of saving enough money to collate a deposit to eventually purchase a home.

City Apartments

City centre apartments are often let to young professionals and those who work in cities, and typically who have a good amount of disposable income. Apartments and flats in city centres are often high rise, fairly newly built and can bring in vast amounts of rent compared to suburban properties.

VIVERE Residences – Manchester

It is critical that those looking to invest in buy to let property choose the type of property best suited to their desire to:

• Generate income that can pay off the buy to let mortgage
• Build a property investment portfolio
• Take a hands-on or hands-off approach to property management

If you’re unsure of what type of buy to let property investment is most appropriate for you, contact the expert team at Forshaw Land & Property Group to discuss your options.

What Is a Buy to Let Mortgage?

If a property is to be let out, a specific buy to let mortgage must be secured to finance its purchase or remaining amount to pay; even if the landlord has become so ‘accidentally’ through inheritance. Buy to let mortgages are secured through specialist lenders, with a variety of products available dependent on the type of landlord and/or investor.

Lenders consider buy to let mortgages to be of higher risk than traditional mortgages, as the owner will not be living in the property – and so there are often additional conditions that a landlord must meet in order to qualify for one. Such conditions include already owning your own property (or have a mortgage on it), having a good credit record, being able to prove evidence of income and employment, and lower maximum age limits.

Buy to let mortgages are usually payable on an interest-only basis, so the total amount owed never decreases proportionately. While this does tend to result in lower monthly mortgage payments, the investor does need a plan to pay back the total equity at the end of the loan.

In most cases, a LTV (to Loan To Value) ratio of at least 75% is required for a buy to let mortgage; which means the initial deposit must be at least 25% of the property value. The amount that can be borrowed on a buy to let mortgage is dependent on the likely monthly rental income. For most lenders, the rental income alone must equate to 125% of the monthly mortgage repayments.

Top Performing Buy to Let Locations in 2025

Thus far in 2025, the highest performing locations for buy to let property investment returns are primarily cities in the north of England: Manchester, Liverpool, Leeds, Birmingham and Nottingham. These cities, all of which are facing vast economic development, comprehensive transport links, and growing employment opportunities, face increasing rental demand and with new developments being built in all, there is vast potential for a range of rental investments.

Manchester – VIVERE Residences – Buy-to-let

In Manchester, the average property price (as per the ONS), is £234,000, with an average monthly rent of £1,214. JLL predicts rental demand growth of 21.7% by 2028. In Liverpool, the average property price is less at £175,000, with an average monthly rent of £776. Savills predict the city’s rental market to grow by 28.8% by 2028.

Leeds has an average property price of £234,000 and an average rent of £1,095 pcm, but with a slightly lower predicted market growth of 19.3% in the next few years.

Slightly further south (albeit not qualifying as the south of England) are Birmingham and Nottingham, with average property prices of £228,000 and £192,000 respectively. The average rent for each is between £900-£1,000 per month, with average rental yields of over 5.2%.

Managing Your Buy to Let Property Effectively

There are two different approaches to managing a buy to let property once it has been purchased: self-managing or using a letting agent.

Self-managing a Buy To Let Property
Self-managing a buy to let property is where the landlord assumes all responsibility for the recruitment of tenants, all letting legalities, property maintenance, tenant communication and rental collection. Dependent on how many buy to let properties a landlord has, this can become a full-time job role. It is time consuming and often expensive, so is best suited to experienced landlords who have a whole portfolio of properties and are well versed in property and tenancy law.

Using a Letting Agent
For those who don’t have the experience, time or desire to manage their rental properties, letting agents take over the responsibility for a fee. There are several different types of agreements with letting agents available, from basic contract provision and tenant referencing to full 24/7 management. Using a letting agent allows landlords to collect rent and not have to concern themselves with the daily management requirements of a buy to let property – including emergency response, maintenance calls and legal interventions.

Letting agents deal directly with tenants on the landlord’s behalf and so there is usually little to no direct communication between landlord and tenant. While working with a letting agent does incur a fee (often a percentage of the monthly rental costs), the amount of time and effort it saves will usually reflect good value.

As specialists, letting agents are up-to-date with the latest in tenancy and property law changes. This includes the introduction of the 2025 Renters’ Rights Bill, which has had a vast impact on both landlords and tenants. To navigate these changes and ensure you remain compliant, speak to Forshaw sister company Primo Property Management.

Buy to Let Tax, Legal and Regulatory Considerations

There are a variety of taxation, legal and regulatory considerations that the owners of buy to let property investments need to be aware of. These include, but by no means are limited to:

• Stamp duty – additional tax to be paid where an individual owns more than one property; through Stamp Duty Land Tax in England and Northern Ireland, Land Transaction Tax in Wales, and Land and Buildings Transaction Tax in Scotland
• Income tax – tax on all rental profits
• Capital gains tax – tax liability to be paid in line with the increase of value of a property over time
• EPCs – the legal requirement for all rented properties to have an up-to-date Energy Performance Certificates
• Licensing requirements – mandatory local licensing for the rent of HMOs
• Property health and safety – the legal requirement for the property to be safely habitable
• Deposit protection – the legal requirement for a tenant’s deposit to be held in a specific scheme.
  

All of the above can be managed by letting agents such as Primo Property Management. In the case of self-management, the landlord holds full responsibility for their legal compliance.

Conclusion: Is Buy to Let Right for You?

The buy to let property sector has seen a myriad of changes over the last 10 years or so; offering better protection to both landlords and tenants. If landlords are confident in their property management knowledge and skills, or intend to work with a specialist letting agency, buy to let property investments can make fantastic returns. With property and rental prices both increasing, there’s no doubt that there’s plenty of money to be made.

If you’re considering investing in your first buy to let property or already have an established property portfolio and want to expand it, get in touch with Forshaw Land & Property Group today. You may just be surprised how much we can help.

Contact us directly by calling +44 (0)1204 299 229 or filling out the form below: