Question 1

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

Accepted Answer

It can be, but margins are thinner than they were. Higher mortgage rates, Section 24 and the 5% stamp duty surcharge mean many properties only work with a decent yield (often 6%+ gross), a larger deposit, or a limited company structure. Run your numbers with the calculator before you offer.

Question 2

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

Accepted Answer

Most lenders want at least 25% of the purchase price. Some go to 20%, but rates are higher. Lenders also stress-test that rent covers the mortgage by around 125%–145% at a notional interest rate.

Question 3

What is a good rental yield in Warrington?

Accepted Answer

Gross yields in Warrington typically sit around 5%–7%, with terraced houses in central areas often at the higher end. Always check local rents on several letting portals rather than relying on averages.

Question 4

Should I use a letting agent?

Accepted Answer

A tenant-find service usually costs 6%–10% of a year's rent; full management 10%–15% of rent collected. With the Renters' Rights Act adding new duties, many first-time landlords find full management worth the cost.

Question 5

Can landlords deduct mortgage interest?

Accepted Answer

Not as an expense if you own in your own name. Under Section 24 you get a tax credit worth 20% of your finance costs instead. Limited companies can still deduct mortgage interest in full.

Question 6

What is SDLT for a second home in 2025?

Accepted Answer

Since 31 October 2024 the surcharge for additional properties in England is 5% on top of standard rates. From 1 April 2025 standard rates are 0% to £125k, 2% to £250k, 5% to £925k, 10% to £1.5m and 12% above. A £200,000 buy-to-let costs £11,500 in stamp duty.

Question 7

How much Capital Gains Tax will I pay when I sell?

Accepted Answer

18% on gains within your basic-rate band and 24% above it, after a £3,000 annual exempt amount. You must report and pay within 60 days of completion.

Question 8

When does Making Tax Digital start for landlords?

Accepted Answer

From 6 April 2026 if your gross property and self-employment income is over £50,000. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. You'll need compatible software and quarterly updates.

Question 9

What happened to Furnished Holiday Lets?

Accepted Answer

The special FHL tax regime was abolished from April 2025. Holiday lets are now taxed like ordinary lets — Section 24 applies, and capital allowances and Business Asset Disposal Relief are no longer available.

Question 10

Should I buy through a limited company?

Accepted Answer

Often worth considering if you're a higher-rate taxpayer, plan to build a portfolio, or want to reinvest profits. The trade-offs are higher mortgage rates, accountancy costs and tax when you take money out as dividends.

Question 11

Can I move my existing properties into a company?

Accepted Answer

Yes, but it's treated as a sale at market value — usually triggering Capital Gains Tax and stamp duty. Some partnership incorporation reliefs exist, but they need specialist advice.

Question 12

Is Section 21 banned?

Accepted Answer

Yes. The Renters' Rights Act 2025 abolishes Section 21 'no-fault' evictions in England from 1 May 2026. Landlords must now use a valid Section 8 ground.

Question 13

Can I still evict to sell the property?

Accepted Answer

Yes, using the new Ground 1A with 4 months' notice — but not in the first 12 months of a tenancy, and you can't re-let the property for 12 months afterwards.

Question 14

How much rent arrears before I can evict?

Accepted Answer

The mandatory Ground 8 now needs 3 months' (13 weeks') arrears at the time of notice and at the hearing, with 4 weeks' notice.

Question 15

How often can I increase the rent?

Accepted Answer

Once a year, using a Section 13 notice with at least 2 months' notice. Tenants can challenge the increase at the First-tier Tribunal.

Question 16

Can I refuse tenants on benefits or with children?

Accepted Answer

No. Blanket bans like 'No DSS' or 'no children' are now unlawful. You can still check affordability and references fairly.

Question 17

Do I have to allow pets?

Accepted Answer

Tenants can request a pet and you can't unreasonably refuse. You can require pet insurance or a reasonable condition.

Question 18

What certificates do I need before letting?

Accepted Answer

A valid EPC (rating E or above), a Gas Safety Certificate (annual), an EICR electrical report (every 5 years), working smoke and CO alarms, deposit protection within 30 days and Right to Rent checks. Use our compliance checker to track them.

Question 19

Will EPC C become mandatory?

Accepted Answer

The government has proposed EPC C for new tenancies from 2028 and all tenancies by 2030. It isn't law yet, but it's wise to factor upgrade costs into any purchase.

Question 20

Do I need a licence to let in Warrington?

Accepted Answer

If it's an HMO with 5+ people from 2+ households, yes. Councils can also run selective or additional licensing in certain areas — check Warrington Borough Council's licensing pages for your address.

Everything landlords ask us

Getting started

Tax

Ltd company vs personal

Renters' Rights Act & evictions

Compliance & safety