Is a BTL Investment Worth the Cost?

Is a BTL Investment Worth the Cost?

BTL has become a very profitable business in the UK.

There’s no denying that recent tax changes have made the BTL market less attractive for investors. Yet it’s still a tempting option with the potential for excellent financial returns. Donna McCreadie, partner and property specialist at Perrys Chartered Accountants, looks at the current landscape and explains why BTL is still a viable investment.

The demise of the BTL market has been much predicted over recent years. Major tax changes, a 3 per cent stamp duty surcharge, and increasing regulation have undoubtedly deterred some from entering the market.

Existing landlords have questioned the viability of their portfolio, and some have made the decision to sell up while house prices are on the increase. Indeed, a recent survey by Nottingham Building Society found that a fifth (20 per cent) of landlords are considering selling all, or part, of their portfolios.

Yet this means that 80 per cent are still keen to retain their assets, suggesting that predictions of a mass exodus of landlords is highly unlikely to happen any time soon. So what are the continuing benefits of investing in buy-to-let property?

Competitive mortgage deals.

After a Covid-induced lull, summer 2021 saw a surge of competitive buy-to-let mortgage deals, with many lenders increasing maximum loan to value (LTV) amounts from 75 per cent to 80 per cent. This means that potential investors do not have to raise quite such a hefty deposit to secure a mortgage. For example, on a purchase price of £300,000, the deposit at 75 per cent LTV would be £75,000, while at 80 per cent LTV it would be a more attractive £60,000.

Despite talk of inflation and a potential increase in the Bank of England base rate, interest rates on all mortgages remain historically low. In the buy-to-let arena, lenders have started to reduce interest rates and offer fee-free options.

The rise in rental demand.

Buying an investment property is the first step, but how can you be sure of finding a tenant? The good news is that rental demand has picked up significantly since the last UK lockdown ended in spring 2021.

The estate agency trade body Propertymark reported a record number of new prospective tenants registering for homes in May. In June this year, there was an average number of five viewings before a property was let, indicating strong demand and confirming that landlords are generally able to choose the most suitable tenant for their property.

HICH LTD has revolutionized the property survey market since day one! Our property survey service is listed as one of the best in the whole of the UK! Take a look at our Trustpilot page and see why everyone chooses us as their property survey provider.

Our vast experience in the local property survey market has made us the number one choice when it comes to surveyors. We offer a top-level service at affordable prices, the cost of our surveys is based on the number of rooms in your property, not their value, so our prices are always better than the competition.

At HICH LTD we are pleased to do our bit to make the world a better place, that’s why we continually partner with NGOs and other institutions to join forces in environmental, social and charitable causes. If you want to know more about our efforts or want to know how you can help, contact us at

Are you looking for a roof, structural, or bespoke survey? Request it here!

Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!

Twitter: @HICHLTD

Facebook: HICH-LTD

Enquire Now

Use the form below to get in touch to book a survey or to ask a question. Alternatively, you can call us on 0345 257 0858 (local rate)

    “Very responsive to emails and were the quickest company to give me a quote. Provided a professional and very detailed but clear report following my survey.”

    David Wotherspoon (Facebook Review)